Separability Testing in Production Economics

Rulon D. Pope and Arne Hallam ()

American Journal of Agricultural Economics, 1988, vol. 70, issue 1, 142-152

Abstract: The implications of separability in production are examined using duality. Restrictions on the profit function implied by separability of the production function, and vice versa, are derived in a simple way. These restrictions are then calculated for commonly used classes of functional forms. Then the method is used to test separability of the profit function using experimental production data. The hypothesis that the profit function was separable (plant nutrients from spacing unit costs) could not be rejected. This implies that an aggregate price index for nutrients is appropriate.

Date: 1988
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:70:y:1988:i:1:p:142-152.

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