Tastes and technology: curvature is not sufficient for regularity.
In specifications of tastes and technology, econometricians often impose curvature globally, but monotonicity only locally or not at all. In fact monotonicity rarely is even mentioned in that literature. But without satisfaction of both curvature and monotonicity, the second-order conditions for opt...
| Publicado en: | Journal of Econometrics Vol. 108; no. 1; pp. 199 - 203 |
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| Formato: | Artículo |
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Elsevier Science
May 2002
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=513138100&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 513138100 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 03044076 ECM jtl: Journal of Econometrics issn: 03044076 maglogo: N pubinfo: dt: May 2002 vid: 108 iid: 1 pid: 1004 pub: Elsevier Science artinfo: ui: 513138100 10.1016/S0304-4076(01)00131-2 ppf: 199 ppct: 4 formats: tig: atl: Tastes and technology: curvature is not sufficient for regularity. aug: au: Barnett, William A. su: Mathematical finance Intermediation (Finance) Production functions (Economic theory) sug: subj: Mathematical finance Intermediation (Finance) Production functions (Economic theory) ab: In specifications of tastes and technology, econometricians often impose curvature globally, but monotonicity only locally or not at all. In fact monotonicity rarely is even mentioned in that literature. But without satisfaction of both curvature and monotonicity, the second-order conditions for optimizing behavior fail, and duality theory fails. The resulting first-order conditions, demand functions, and supply functions become invalid. Although unconstrained specifications of technology are more likely to produce violations of curvature than monotonicity, I believe that induced violations of monotonicity become common, when curvature alone is imposed. Hence the current common practice of equating regularity with curvature is not justified. Copyright (c) 2002 Elsevier Science B.V. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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