@article{Featherstone:173724, recid = {173724}, author = {Featherstone, Allen M. and Moghnieh, Ghassan A. and Goodwin, Barry K.}, title = {Farm-level nonparametric analysis of cost-minimization and profit-maximization behavior}, journal = {Agricultural Economics: The Journal of the International Association of Agricultural Economists}, address = {1995-11}, number = {968-2016-75533}, pages = {10}, year = {1995}, 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.}, url = {http://ageconsearch.umn.edu/record/173724}, doi = {https://doi.org/10.22004/ag.econ.173724}, }