Georgiadou, Sofia; Demetriou, Ioannis C. - Society for Computational Economics - SCE - 2006
The problem of convexity runs deeply in economic theory. For example, increasing returns or upward slopes (convexity … often assumed in economics. Quite frequently, however, the observations have lost convexity (or concavity) due to errors of … the measuring process. We derive the Karush-Kuhn-Tucker test statistic of convexity, when the estimator of the data …