The Impact of Negativity on Separability Testing.
During separability testing, it has not been common practice to verify if the data satisfy the negativity condition. The impacts of imposing negativity on separability test results are examined for two groups of commodities using Batten's generalized demand system and with Monte Carlo simulations. Results indicate that imposing negativity did not alter model estimates when negativity was spontaneously satisfied. Also, imposing negativity rarely altered separability test results when the data did not spontaneously satisfy negativity. Copyright 2001 by American Agricultural Economics Association
Year of publication: |
2001
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Authors: | Eales, James ; Henderson, Jason R |
Published in: |
American Journal of Agricultural Economics. - American Agricultural Economics Association. - Vol. 83.2001, 2, p. 465-77
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Publisher: |
American Agricultural Economics Association |
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