A Simple Test for Specification Error

We propose a test which could be widely applied to determine to adequacy of model which approximate unknown functional forms. As an illustration, the translog system of budget-share equations is rejected as an approximate specification using Christensen, Jorgenson and Lau's (1975) data.

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Year of publication:	1986
Authors:	Nicol, Christopher J.
Institutions:	Economics Department, Queen's University

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Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	8 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005688276