Numeraire 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 numeraire price is measured with error. Numeraire...

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