A CRITIQUE OF THE CONSTANT ELASTICITY OF TRANSFORMATION (CET) LINEAR SUPPLY SYSTEM

An elusive restriction maintained in earlier CET supply models with three or more products is shown to result in a potentially serious misspecification. Its impact on empirical estimates is found to be substantial, and an alternative formulation is presented which overcomes the problem while still maintaining the CET hypothesis.

MoreLess

Year of publication:	1984
Authors:	Shumway, C. Richard ; Powell, Alan A.
Published in:	Western Journal of Agricultural Economics. - Western Agricultural Economics Association - WAEA. - Vol. 09.1984, 02
Publisher:	Western Agricultural Economics Association - WAEA
Subject:	Research Methods/ Statistical Methods

More details

Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005327784