Non-Nested Test of Separability for Flexible Functional Forms, A

GianCarlo Moschini

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: This paper develops a separable functional form in which all the relevant aggregator functions are modeled to the desired degree of approximation. This leads to separable structures that are more flexible than those implied by parametric restrictions of flexible functional forms. Tests of separability can then be accomplished in a nonnested framework. This approach is illustrated with an application to input-output separability for a multiproduct translog cost function using a robust likelihood ratio testing procedure.

Date: 1992-01-01
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Published in Review of Economics and Statistics 1992, vol. LXXIV, pp. 365-369

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Journal Article: A Non-nested Test of Separability for Flexible Functional Forms (1992)
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