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Omitted variables, dynamic specification and tests for homogeneity

Author

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  • David (David Patrick) Madden

Abstract

This note examines the sensitivity of tests for homogeneity in demand systems to such factors as omitted variables and dynamic and stochastic specification. It estimates demand systems for Ireland using time-series data for different unconditional demand systems with differing dynamic and stochastic specification and also estimates a conditional demand system, thus attempting to reconcile disparate results from previous work in this area.

Suggested Citation

  • David (David Patrick) Madden, 1994. "Omitted variables, dynamic specification and tests for homogeneity," Working Papers 199412, School of Economics, University College Dublin.
    • Handle: RePEc:ucn:wpaper:199412
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    File URL: http://hdl.handle.net/10197/1756
    File Function: First version, 1994
    Download Restriction: no
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    More about this item

    Keywords

    Homogeneity; Dynamic specification; Conditional demands; Demand (Economic theory)--Mathematical Models; Consumption (Economics)--Mathematical models;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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