"Numéraire" prices that are measured with error create challenges for econometric estimation. A straightforward approach for a model with linear input demands, such as generated from a quadratic normalized profit function, is proposed where the "numéraire" price is measured with error....

Supply functions in the ubiquitous Gorman class are examined for their homogeneity properties. Homogeneity places surprisingly strong restrictions on functional forms. These forms facilitate testing of aggregability given homogeneity or homogeneity given aggregability or testing both. Copyright...

Duality methods for incomplete systems of consumer demand equations are adapted to the dual structure of variable cost functions in joint production. This allows identification of necessary and sufficient restrictions on technology and cost so that conditional factor demands can be written as...

Supply functions in the ubiquitous Gorman class are examined for their homogeneity properties. Homogeneity places surprisingly strong restrictions on functional forms. These forms facilitate testing of aggregability given homogeneity or homogeneity given aggregability or testing both. Copyright...

Numéraire prices that are measured with error create challenges for econometric estimation. A straightforward approach for a model with linear input demands, such as generated from a quadratic normalized profit function, is proposed where the numéraire price is measured with error. Numéraire...

Economists estimating demand and supply systems face the question of using shares or quantities as dependent variables. This article finds that inconsistent estimates are obtained if one makes the wrong choice. A robust structure is presented to let the data choose the preferred form. Empirical...

Typical econometric production practices under duality ignore the source of disturbances. We show that, depending on the source, a different approach to estimation is required. The typical approach applies under errors in factor input measurement rather than errors in optimization. An approach...

A random-effects, binomial probit model is applied to data for a panel of Kansas wheat farms to examine Multiple Peril Crop Insurance demand. A theoretical model is developed which suggests inclusion of the moments of both market return and the return to insurance. Empirical results indicate...

Dual production specifications derived under certainty are typically randomized for econometric purposes with ad hoc error specifications. This article shows that such approaches can cause integrability conditionsto fail. In particular, if errorsin input demands represent errorsin optimization...