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Kernel Regression in Empirical Microeconomics

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  • Richard Blundell
  • Alan Duncan

Abstract

We consider the implementation of Kernel methods in empirical microeconomics with specific application to Engel curve estimation in the analysis of consumer behavior. A set of recently developed tests for the parametric null hypothesis against a nonparametric alternative are discussed and implemented for the Engel curve application. We also consider semi-parametric estimation in partially linear models and the case of endogenous regressors. Gauss-based software is available for each technique implemented in the paper.

Suggested Citation

  • Richard Blundell & Alan Duncan, 1998. "Kernel Regression in Empirical Microeconomics," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 62-87.
  • Handle: RePEc:uwp:jhriss:v:33:y:1998:i:1:p:62-87
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