Testing regularity properties in static and dynamic duality models: the case of Greek agriculture

An error correction model of Greek agriculture for the period 1961-1994 is estimated using a dynamic system of output and input share equations derive d from a translog profit function. Nested within this model are a static mo del and three simpler dynamic models: a partial adjustment model, autoregre ssive error model and finite distributed lag model. The data-generating pro cess rejects the static model and simpler dynamic models in favour of the m ore general error correction model, which is also found to perform better t han the static model in terms of consistency with the regularity properties implied by economic theory.