Fare, Rolf; Grosskopf, Shawna; Nelson, Julianne - In: International Economic Review 31 (1990) 3, pp. 709-20
In many instances, a firm's observed production choices will not be consistent with profit maximization or cost minimization at market prices. Such firms are generally assumed to minimize cost with respect to shadow prices. The authors extend this shadow cost function approach to allow for the...