A Simple Test for Specification Error

Christopher J. Nicol

Working Paper from Economics Department, Queen's University

Abstract: We propose a test which could be widely applied to determine to adequacy of model which approximate unknown functional forms. As an illustration, the translog system of budget-share equations is rejected as an approximate specification using Christensen, Jorgenson and Lau's (1975) data.

Pages: 8 pages
Date: 1986
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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:654

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