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The Impact Of Negativity On Separability Testing

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Author Info
Eales, James
Henderson, Jason
Abstract

While performing separability tests, studies rarely checked negativity to ensure the appropriate curvature of the expenditure function. The effect of imposing negativity on the results of separability tests is examined. Findings indicate that imposing negativity can affect separability tests in demand systems that do not spontaneously satisfy the curvature restriction.

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File URL: http://purl.umn.edu/21817
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Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2000 Annual meeting, July 30-August 2, Tampa, FL with number 21817.

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Date of creation: 2000
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Handle: RePEc:ags:aaea00:21817

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Related research
Keywords: Demand and Price Analysis; Research Methods/ Statistical Methods;

References listed on IDEAS
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  1. Ryan, David L & Wales, Terence J, 1998. "A Simple Method for Imposing Local Curvature in Some Flexible Consumer-Demand Systems," Journal of Business & Economic Statistics, American Statistical Association, vol. 16(3), pages 331-38, July.
    Other versions:
  2. Chalfant, James A. & Gray, Richard S., 1989. "Evaluating prior beliefs in a demand system : the case of Meats demand in Canada," CUDARE Working Paper Series 483, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
  3. Italianer, Alexander, 1985. "A small-sample correction for the likelihood ratio test," Economics Letters, Elsevier, vol. 19(4), pages 315-317. [Downloadable!] (restricted)
  4. Hideo Kozumi & Noriko Hashimoto & Hikaru Hasegawa, 1999. "Testing for negativity in a demand system: A Bayesian approach," Empirical Economics, Springer, vol. 24(2), pages 211-223. [Downloadable!] (restricted)
  5. Diewert, W. E. & Wales, T. J., 1995. "Flexible functional forms and tests of homogeneous separability," Journal of Econometrics, Elsevier, vol. 67(2), pages 259-302, June. [Downloadable!] (restricted)
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  6. Moschini, Giancarlo & Moro, D. & Green, R., 2004. "Maintaining and Testing Separability in Demand Systems," Staff General Research Papers 11247, Iowa State University, Department of Economics.
  7. Barten, A. P. & Geyskens, E., 1975. "The negativity condition in consumer demand," European Economic Review, Elsevier, vol. 6(3), pages 227-260, July. [Downloadable!] (restricted)
  8. Hayes, Dermot J. & Wahl, Thomas I. & Williams, Gary W., 2003. "Testing Restrictions on a Model of Japanese Meat Demand," Staff General Research Papers 10940, Iowa State University, Department of Economics.
  9. Blackorby, C. & Davidson, R. & Schworm, W., 1990. "Implicit Separability: Characterisation And Implications For Consumer Demands," G.R.E.Q.A.M. 90a16, Universite Aix-Marseille III.
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This page was last updated on 2009-11-26.

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