Edgerton, David; Shukur, Ghazi - In: Applied Economics Letters 3 (1996) 11, pp. 693-695
A paper by Xepanadeas and Habib, that estimates dynamic demand models, is shown to contain some serious errors. Careful consideration of the adding-up condition is shown to be necessary when using demand systems with autoregressive disturbances. Misspecification testing should be used in all...