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A third-order translog is estimated using Canadian cross-sectional micro-data, stratified by four family sizes. Third-order terms and family size are found to be statistically important explanatory variables. Homogeneity and symmetry restrictions are also rejected for the third-order translog,...
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General and commodity-specific equivalence scales are estimated with Canadian microdata. The former are identifiable when exact aggregation is imposed. However, these identifiability restrictions can be tested, as can homogeneity and symmetry in the model employed here. Exact aggregation is not...
Persistent link: https://www.econbiz.de/10005035675
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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This paper assesses the importance of exact aggregation restrictions in the context of Jorgenson, Lau and Stoker's (1982) model of aggregate consumer behaviour, and analyzes demographic variables. We find the exact aggregation restrictions are strongly rejected by the data, and stratification of...
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