AN EXAMINATION OF THE EMPIRICAL PROPERTIES OF DUALITY BETWEEN THE RESTRICTED PROFIT, UNRESTRICTED PROFIT, AND PRODUCTION FUNCTIONS
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This research examines the empirical properties of duality theory. A comparison of the Hessian matrices calculated from the normalized unrestricted and restricted profit, and production functions indicate that duality is highly sensitive to measurement error and relative price variability.
Keywords: duality, restricted and unrestricted profit functions
