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Chambers, R.G. and Fare, R. (1998) Translation Homotheticity. Economic Theory, 11, 629-641. http://dx.doi.org/10.2307/1060079

has been cited by the following article:

  • TITLE: Lerner Index, Productive Efficiency and Homotheticity

    AUTHORS: Andrea Mantovi

    KEYWORDS: Lerner Index, Technical Efficiency, Allocative Efficiency, Homotheticity

    JOURNAL NAME: Theoretical Economics Letters, Vol.5 No.3, May 14, 2015

    ABSTRACT: Chambers et al. (2014) set forth a decomposition of the Lerner index, which results in a function on the full space of input and output prices and quantities, such that the effect of the Farrell output measure of technical efficiency is explicit. In close correspondence, a decomposition of the Lerner index is established in which allocative efficiency (in both standard and reversed form, as defined by Bogetoft et al., 2006) complements the effect of input technical efficiency, with the reversed decomposition bound to the hypothesis of homotheticity. The resulting functions on are conjectured to define pregnant perspectives on the benchmark relevance of homothetic models, and their generalizations to multiple output.