The silence bleating! of the lambdas: Comment

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Abstract

Alston and Chalfant's least squares test for functional form is biased. A valid test is derived for both univariate and multivariate regression models. An estimation method to account for endogenous left- and right-hand-side current-period budget shares in the Rotterdam and LA- AIDS models is presented. Alston and Chalfant's strenuous rejection of the LA-AIDS model in favor of the Rotterdam model is not supported by their data.

Original languageEnglish
Pages (from-to)221-230
Number of pages10
JournalAmerican Journal of Agricultural Economics
Volume80
Issue number1
DOIs
Publication statusPublished - 1 Jan 1998
Externally publishedYes

Keywords

  • Almost ideal demand system
  • Demand models
  • Double length regressions
  • Functional form
  • Lagrange multiplier tests
  • Least squares
  • Maximum likelihood
  • Rotterdam model

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