BOX-COX TRANSFORMATIONS AND ERROR TERM SPECIFICATION IN DEMAND MODELS

This paper analyzes the influence of error-term specification and functional form on a quarterly demand model for beef. The Box-Cox transformation is used to generalize the functional form while the equation error term is postulated to be both heteroskedastic and autoregressive. Results indicated that both functional form and error-term specification can play a major role in elasticity estimation, elasticity behavior, and hypothesis testing.

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Year of publication:	1983
Authors:	Blaylock, James R. ; Smallwood, David M.
Published in:	Western Journal of Agricultural Economics. - Western Agricultural Economics Association - WAEA. - Vol. 08.1983, 01
Publisher:	Western Agricultural Economics Association - WAEA
Subject:	Demand and Price Analysis

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

Persistent link: https://www.econbiz.de/10005327807