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Abstract
This study investigates non-parametrically the optimizing behavior of a sample of 289 Kansas farms under
profit-maximization and cost-minimization hypotheses. The study uses both deterministic and stochastic non-parametric
tests. The deterministic results do not support strict adherence to either optimization hypothesis. The
stochastic tests suggest that all 289 farms fail the profit-maximization hypothesis, whereas 171 farms failed the
cost-minimization hypothesis. Allowing for non-regressive technical change does not alter the basic results; 276
farms violate the profit-maximization hypothesis and 138 violate the cost-minimization hypothesis. The evidence
against cost-minimization behavior seems to be far less substantial than that against profit-maximization behavior.