Nonparametric Tests of Cost Minimizing Behavior: A Study of Indian Farms
扩展了非参数方法，允许部分投入为准固定，提出可变成本最小化弱公理，并用印度西孟加拉邦农场数据检验成本最小化行为，发现整体成本最小化被强烈拒绝，但技术效率和可变成本最小化的违反较轻，表明失败主要源于资本和土地市场的不完善。
Abstract We extend existing nonparametric methods of analyzing production efficiency to allow some inputs to be quasi‐fixed. Varian's Weak Axiom of Cost Minimization is modified to derive the Weak Axiom of Variable Cost Minimization. The methodology is applied to farm level data from West Bengal, India, which are analyzed for consistency with cost minimizing behavior. There is strong evidence against overall cost minimization, a result that cannot be rationalized in terms of production uncertainty and risk aversion. However, violation of either technical efficiency or of variable cost minimization is much less serious. This suggests that failure of cost minimization is principally due to imperfections in the markets for capital and land.