The concept of translation homotheticity is introduced and defined. It is demonstrated that translation homotheticity is necessary and sufficient for: disposable surplus to be independent of the reference utility, Luenberger's compensating and equivalent benefits to be independent of the...

This paper shows that standard tools of efficiency analysis, directional distance functions, can be used to characterize the investment-returns technology. That ability to characterize the investment-returns technology and fundamental duality relationships imply that directional distance...