AN EXAMINATION OF THE EMPIRICAL PROPERTIES OF DUALITY BETWEEN THE RESTRICTED PROFIT, UNRESTRICTED PROFIT, AND PRODUCTION FUNCTIONS

Abstract

This research examines the empirical properties of duality theory. A comparison of the Hessian matrices calculated from the normalized unrestricted and restricted profit, and production functions indicate that duality is highly sensitive to measurement error and relative price variability. Keywords: duality, restricted and unrestricted profit functionsduality, restricted and unrestricted profit functions, Demand and Price Analysis, Production Economics,