ESTIMATING THE CHARACTERISTICS OF HOMOGENEOUS FUNCTIONSUSING FLEXIBLE FUNCTIONAL FORMS
| dc.creator | O'Donnell, Christopher J. | |
| dc.date | 2017-04-01T20:14:41Z | |
| dc.date.accessioned | 2026-07-09T06:03:43Z | |
| dc.description | A flexible functional form can provide a second-order approximation to an arbitrary unknown function at a single point. Except in special cases, the parameters of flexible forms will vary from one point of approximation to another. I use this property to show that, in general, if an unknown function is homogeneous then i) Euler's Theorem gives rise to linear equality constraints involving both the data and a set of observation-varying flexible form parameters, ii) the common practice of imposing homogeneity on flexible functional forms is unnecessarily restrictive, and iii) it is possible to obtain estimates of the observation-varying parameters of approximating flexible forms using a Singular Value Decomposition (SVD) estimator. Two illustrations are provided: artificially-generated data is used to estimate the characteristics of a generalised linear production function; and Canadian data is used to estimate the characteristics of a consumer demand system. | |
| dc.identifier | doi:10.22004/ag.econ.123713 | |
| dc.identifier | https://ageconsearch.umn.edu/record/123713/files/Odonnell.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/123713 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/571859 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/123713 | |
| dc.title | ESTIMATING THE CHARACTERISTICS OF HOMOGENEOUS FUNCTIONSUSING FLEXIBLE FUNCTIONAL FORMS | |
| dc.type | Text |