Journal ArticleDOI
A size-corrected Wald test for Slutsky symmetry in systems of demand equations
Reads0
Chats0
TLDR
In this article, an unbiased estimate for the inverse covariance matrix was used to make a size correction to the Wald Test and Monte Carlo results indicate that the resulting size-corrected test leads to fewer rejections of null hypothesis than theoretically expected.About:
This article is published in Economics Letters.The article was published on 1985-01-01. It has received 5 citations till now. The article focuses on the topics: Wald test & Sequential probability ratio test.read more
Citations
More filters
Journal ArticleDOI
Conflicts between Theory and Practice in Production Economics
TL;DR: In this paper, the second-order substitution effects using related price data, which in practice are often highly collinear, are determined using parametric tests for profit maximization, and conflicts between theory and empirical evidence should also rise.
Journal ArticleDOI
Some evidence on the performance of size correction factors in testing consumer demand models
P. M. C. de Boer,R. Harkema +1 more
TL;DR: This paper showed that restricting the covariance matrix and using its unbiased estimate is quite helpful when performing the Wald test, while application of Italianer's correction factor works quite well when using the likelihood ratio test.
Journal ArticleDOI
An exact test for linear restrictions in seemingly unrelated regressions with the same regressors
Noriko Hashimoto,Kazuhiro Ohtani +1 more
TL;DR: In this paper, an exact test for linear restrictions on regression coefficients in seemingly unrelated regressions with the same regressors in each equation is derived, and the test statistic is distributed as the T 2 distribution, and thus critical values can be obtained from the F distribution.
Journal ArticleDOI
Testing demand homogeneity when error terms have an elliptically symmetric distribution
Manami Ogura,Kazuhiro Ohtani +1 more
TL;DR: In this article, the exact test for the homogeneity restriction developed by Laitinen (1978) is robust when the error terms have an elliptically symmetric distribution and the power performance of the test is also examined.
Journal ArticleDOI
Testing Slutsky symmetry in systems of linear demand equations
J. Lew Silver,Mukhtar M. Ali +1 more
TL;DR: The power of the F test is comparable to that of the likelihood ratio and Lagrange multiplier tests for a variety of simulated data sets as discussed by the authors, and two methods for controlling the size of F test for Slutsky symmetry in systems of linear demand equations.
References
More filters
Journal ArticleDOI
Why is demand homogeneity so often rejected
TL;DR: In this article, a simulation experiment shows that the standard test is seriously biased toward rejecting homogeneity of consumer demand, and that a small sample interpretation of the test statistic explains this bias, which is not the case in this paper.
Journal ArticleDOI
The sad fate of the asymptotic slutsky symmetry test for large systems
TL;DR: The standard test statistic for Slutsky symmetry is biased toward rejection of the null hypothesis, particularly for large demand equation systems as discussed by the authors, which is a common assumption for many demand equations.
Journal ArticleDOI
Conflict Among the Criteria Revisited; The W, LR and LM Tests
G. B. A. Evans,N. E. Savin +1 more
Related Papers (5)
A Correction for Local Biasedness of the Wald and Null Wald Tests
Kim-Leng Goh,Maxwell L. King +1 more