Estimation and hypothesis testing in dynamic singular equation systems : an application to consumers expenditure in Greece
Part of : Σπουδαί : journal of economics and business ; Vol.46, No.3-4, 1996, pages 186-201
Issue:
Pages:
186-201
Author:
Abstract:
Restrictions on systems of demand equations have been traditionally tested using static models. The usual results of these tests are a rejection of the restrictions imposed by the economic theory. A possible explanation of these findings is inadequate dynamic specification of the demand functions. This paper estimates a vector time series model of expenditure shares in the context of a singular dynamic demand system. The model allows for non-symmetric and non-homogeneous short run behaviour. The homogeneity and symmetry restrictions are only examined in the long run structure. Results based on Greek time series data are presented and reject the static modelling while restrictions suggested by economic theory are not rejected when imposed on the long run structure.
Subject (LC):
Notes:
Περιέχει παράρτημα πινάκων και βιβλιογραφία
