A Comparison of the Performance of Flexible Functional Forms for Use in Applied General Equilibrium Modelling
AbstractThis paper describes a procedure for testing the global properties of functional forms which recognizes their specific role in economic equilibrium modelling. This procedure is employed to investigate the global regularity and third-order curvature properties of three widely used flexible functional forms, the Translog, the Generalized Leontieff and the Normalized Quadratic functional forms. We contrast the properties of these functions with a globally regular flexible form, the Non-separable Nested Constant-Elasticity-of-Substitution functional form. Our results indicate that inherently regular representations are best suited for equilibrium analysis. Citation Copyright 1998 by Kluwer Academic Publishers.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Society for Computational Economics in its journal Computational Economics.
Volume (Year): 11 (1998)
Issue (Month): 3 (June)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Kiuila, O. & Rutherford, T.F., 2013. "Piecewise smooth approximation of bottom–up abatement cost curves," Energy Economics, Elsevier, vol. 40(C), pages 734-742.
- Nabil Annabi & John Cockburn & Bernard Decaluwé, 2006. "Functional Forms and Parametrization of CGE Models," Working Papers MPIA 2006-04, PEP-MPIA.
- Pizer, William & Morgenstern, Richard & Shih, Jhih-Shyang, 1999.
"Jobs Versus the Environment: An Industry-level Perspective,"
dp-99-01-rev, Resources For the Future.
- Morgenstern, Richard D. & Pizer, William A. & Shih, Jhih-Shyang, 2002. "Jobs Versus the Environment: An Industry-Level Perspective," Journal of Environmental Economics and Management, Elsevier, vol. 43(3), pages 412-436, May.
- Richard D. Morgenstern & William A. Pizer & Jhih-Shyang Shih, 2001.
"The Cost Of Environmental Protection,"
The Review of Economics and Statistics,
MIT Press, vol. 83(4), pages 732-738, November.
- Davies, James B., 2004. "Microsimulation, CGE and Macro Modelling for Transition and Developing Economies," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Boeters, Stefan & Feil, Michael, 2009.
"Heterogeneous labour markets in a microsimulation-AGE model: application to welfare reform in Germany,"
ZEW Discussion Papers
08-043 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Stefan Boeters & Michael Feil, 2009. "Heterogeneous Labour Markets in a Microsimulation–AGE Model: Application to Welfare Reform in Germany," Computational Economics, Society for Computational Economics, vol. 33(4), pages 305-335, May.
- Boeters, Stefan & Feil, Michael, 2008. "Heterogeneous labour markets in a microsimulation-AGE model : application to welfare reform in Germany," IAB Discussion Paper 200825, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Boeters, Stefan & Feil, Michael, 2008. "Heterogeneous Labour Markets in a Microsimulation-AGE Model: Application to Welfare Reform in Germany," ZEW Discussion Papers 08-043, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Thomsen, Thomas, 2000. "Short cuts to dynamic factor demand modelling," Journal of Econometrics, Elsevier, vol. 97(1), pages 1-23, July.
- Hess, Sebastian & Surry, Yves R., 2011. "The CDET Profit Function: Could it generate a Parsimonious Agricultural Sector Model?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114539, European Association of Agricultural Economists.
- Truong P. Truong & Claudia Kemfert, 2010. "WIATEC: A World Integrated Assessment Model of Global Trade Environment and Climate Change," Discussion Papers of DIW Berlin 1021, DIW Berlin, German Institute for Economic Research.
- Gohin, Alexandre, 2005. "The specification of price and income elasticities in computable general equilibrium models: An application of latent separability," Economic Modelling, Elsevier, vol. 22(5), pages 905-925, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.