Recently there has been a growing debate as to whether the empirical properties ofproduction response derived from the multi-product framework are consistent with thebehavioral assumption in the duality theory of production. This issue could in turn affectthe reliable estimates of elasticities...

Abstract In many areas of economic analysis, economic theory restricts the shape as well as other characteristics of functions used to represent economic constructs. Obvious examples are the monotonicity and curvature conditions that apply to utility, profit, and cost functions. Commonly, these...

We extend Hansen’s (2005) test to testing hypotheses involving general inequality constraints where the variance–covariance matrix of the functions in the constraints depends on the unknown parameters. The test can be applied to a wider class of problems than Wolak’s (1991).