In this paper we test for large deviations in headline measures of the price level relative to core measures using the recently proposed test of Phillips et al. (2011a). We find evidence of explosive behaviour in the headline price index of personal consumption expenditures (PCE) relative to the...

Any demand equation satisfying Lau’s (1982) Fundamental Theorem of Exact Aggregation and 0° homogeneity in prices and income will have a Gorman (1981) functional form for each income term. This property does not depend on symmetry or adding up. The implications of this result are illustrated...

The Central Limit Theorem (CLT) is an important result in statistics and econometrics and econometricians often rely on the CLT for inference in practice. Even though, different conditions apply to different kinds of data, the CLT results are believed to be generally available for a range of...

There are currently about two dozen Lorenz models available in the literature for fitting grouped income distribution data. A general method to construct parametric Lorenz models of the weighted product form is offered in this paper. First, a general result to describe the conditions for the...

We present two new Lorenz curve families by using the basic model proposed by Sarabia, Castillo and Slottje (1999). We present estimations which show that the models in our new families are very efficient when applied to data on income distribution for a range of countries from Shorrocks (1983).