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Testing for Shape Invariance of Semiparametric Equivalence Scales

Author

Listed:
  • Thanasis Stengos

    (University of Guelph)

  • Dianqin Wang

    (University og Guelph)

Abstract

Within a semiparametric framework we propose a test of shape invariance of Engel curves, which is a necessary condition for base independence. Using Canadian family expenditure data for 1996 we reject shape invariance for the fuel and clothing share equations.

Suggested Citation

  • Thanasis Stengos & Dianqin Wang, 2007. "Testing for Shape Invariance of Semiparametric Equivalence Scales," Economics Bulletin, AccessEcon, vol. 4(21), pages 1-11.
    • Handle: RePEc:ebl:ecbull:eb-07d10005
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    References listed on IDEAS

    as
    1. Lyssiotou, Panayiota & Pashardes, Panos & Stengos, Thanasis, 1999. "Preference Heterogeneity and the Rank of Demand Systems," Journal of Business & Economic Statistics, American Statistical Association, vol. 17(2), pages 248-252, April.
    2. Gozalo, Pedro L., 1997. "Nonparametric bootstrap analysis with applications to demographic effects in demand functions," Journal of Econometrics, Elsevier, vol. 81(2), pages 357-393, December.
    3. Yatchew, Adonis & Sun, Yiguo & Deri, Catherine, 2003. "Efficient Estimation of Semiparametric Equivalence Scales with Evidence from South Africa," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(2), pages 247-257, April.
    4. Wilke, Ralf A., 2003. "Semiparametric Estimation of Regression Functions Under Shape Invariance Restrictions," ZEW Discussion Papers 03-64, ZEW - Leibniz Centre for European Economic Research.
    5. Richard Blundell & Alan Duncan & Krishna Pendakur, 1998. "Semiparametric estimation and consumer demand," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 13(5), pages 435-461.
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    JEL classification:

    • D1 - Microeconomics - - Household Behavior

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