A production function highly concave in inputs will have a dual profit function less convex in prices. Even large variations in prices will cause little variation in input usage and output, resulting in poor profit function estimates. This is demonstrated using Monte Carlo simulation with...

In recent years there has been much discussion of the difference between Inequality and Polarization. The vast literature on inequality is held to miss out key features of distribution change, which are better described as changes in the polarization. Axioms have been proposed which capture some...