Multilateral productivity comparisons and homotheticity

Antonio Peyrache ()

Journal of Productivity Analysis, 2013, vol. 40, issue 1, 57-65

Abstract: In this paper it is shown that a well known procedure (GEKS) of transitivizing a bilateral system of productivity comparisons is implicitly a way of imposing a homothetic structure onto the data. The main implication of this result is that deviations between the bilateral and the multilateral (GEKS) indexes can be interpreted as a measure of local deviation from the homothetic assumption. This establishes an additional link between homotheticity and transitivity. Copyright Springer Science+Business Media, LLC 2013

Keywords: Multilateral comparisons; Productivity; EKS; Homotheticity; Transitivity; Hicks neutrality; D24 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (7)

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DOI: 10.1007/s11123-012-0298-7

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