Toward a Unified Approach to Testing for Weak Separability
AbstractIn this paper we propose a unified framework for testing weak separability. We present a new three-step procedure, which is a joint test of necessary and sufficient conditions that takes account of the possibilities of both measurement error and incomplete adjustment. We illustrate the operational capability of the procedure with an empirical example. At the present time our procedure works well in medium sized samples, but may not be practical for datasets with extremely large sample sizes. As computing technology continues to advance, however, high-powered methods like the one we propose should supplant testing approaches that were originally designed to circumvent computational limitations
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Bibliographic InfoPaper provided by Lund University, Department of Economics in its series Working Papers with number 2004:1.
Length: 13 pages
Date of creation: 21 Jan 2004
Date of revision:
Publication status: Published in Economics Bulletin, 2005, pages 1-7.
Contact details of provider:
Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
Phone: +46 +46 222 0000
Fax: +46 +46 2224613
Web page: http://www.nek.lu.se/en
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Weak separability; measurement error; incomplete adjustment;
Other versions of this item:
- David Edgerton & Donald Dutkowsky & Thomas Elger & Barry Jones, 2005. "Toward a unified approach to testing for weak separability," Economics Bulletin, AccessEcon, vol. 3(20), pages 1-7.
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-01-25 (All new papers)
- NEP-ECM-2004-01-25 (Econometrics)
- NEP-MIC-2004-01-25 (Microeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS
200904, University of Kansas, Department of Economics, revised Jan 2009.
- Barnett, William A. & de Peretti, Philippe, 2009. "Admissible Clustering Of Aggregator Components: A Necessary And Sufficient Stochastic Seminonparametric Test For Weak Separability," Macroeconomic Dynamics, Cambridge University Press, vol. 13(S2), pages 317-334, September.
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