Baffes, John (contributor) - 2007
taking into account inflation and technological change. The
rest of this paper proceeds as follows. The next section …
price and inflation coefficients to unity (i.e. β1 + β2 = 1). The advantage of estimating (1)
instead of (2) is that the … homogeneity restriction is relaxed and a direct estimate the
effect of inflation can be obtained (Houthakker 1975).
The dataset …