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The Generalized Composite Commodity Theorem: Stronger Support in the Presence of Data Limitations

George Davis

The Review of Economics and Statistics, 2003, vol. 85, issue 2, 476-480

Abstract: Because of common data limitations, the existing testing framework for the generalized composite commodity theorem (Lewbel, 1996) is incomplete. This note clarifies and strengthens the testing procedure by implementing modified Bonferroni procedures. The conditions are established for consistency between the existing and modified Bonferroni tests. In an empirical application, the Bonferroni tests provide more powerful support for the generalized composite commodity theorem than is obtained from the existing test. © 2003 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Date: 2003
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The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu

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