Premium
Random Profits and Duality
Author(s) -
Pope Rulon D.,
Just Richard E.
Publication year - 2002
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/1467-8276.00238
Subject(s) - dual (grammatical number) , duality (order theory) , certainty , production (economics) , econometrics , computer science , yield (engineering) , affect (linguistics) , economics , post hoc , mathematical economics , microeconomics , mathematical optimization , mathematics , psychology , discrete mathematics , medicine , art , materials science , geometry , literature , communication , dentistry , metallurgy
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 that affect output, then typical dual approachesdo not yield congruent suppliesand demands.