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Choice of representation system for economic analysis

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Author Info
Hang Keun Ryu
Abstract

Many well-known economic assumptions and desired restrictions can be readily established with the proper choice of a coordinate representation system. For example, the homotheticity assumption can be readily established with the polar coordinate system, the concavity restriction with the Muntz-Sartz series, the convexity restriction with the polynomial series, the orthogonality of regression functions with the orthonormal bases expansion, and the covariance stationary process with the Fourier series expansion. To describe a backward-bending curve, the radial regression can be defined and utilized. Thus, many economic assumptions and desired properties have their own corresponding coordinate representation systems.

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Article provided by Taylor and Francis Journals in its journal Applied Economics Letters.

Volume (Year): 10 (2003)
Issue (Month): 13 (October)
Pages: 863-866
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Handle: RePEc:taf:apeclt:v:10:y:2003:i:13:p:863-866

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  1. Ryu, Hang K. & Slottje, Daniel J., 1996. "Two flexible functional form approaches for approximating the Lorenz curve," Journal of Econometrics, Elsevier, vol. 72(1-2), pages 251-274. [Downloadable!] (restricted)
  2. Geweke, John, 1986. "Exact Inference in the Inequality Constrained Normal Linear Regression Model," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(2), pages 127-41, April. [Downloadable!] (restricted)
  3. Barnett, William A. & Geweke, John & Wolfe, Michael, 1991. "Seminonparametric Bayesian estimation of the asymptotically ideal production model," Journal of Econometrics, Elsevier, vol. 49(1-2), pages 5-50. [Downloadable!] (restricted)
  4. Arnold Zellner & Hang Ryu, 1998. "Alternative functional forms for production, cost and returns to scale functions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 13(2), pages 101-127. [Downloadable!]
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This page was last updated on 2009-12-5.


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