This paper analyzes a systems approach to employment effects by formulating CONDELES, the aggregate consumption function associated with Durables in the Extended Linear Expenditure System. The complete system, with disposable income, prices, the real interest rate and lagged stocks is fitted to...

This note applies the traditional analysis of specification error to the Cox-tests for separate regression models. Incorrect inclusion of variables in the alternative model leads to consistent tests of the null, whereas incorrect exclusion of variables from the alternative may render the tests...

The first paper demonstrates that Theil's (1961) minimum error variance criterion is asymptotically valid for choosing between non-nested non-linear regression models, as long as one of the models is 'true'. The second paper shows that when the null and alternative hypotheses are separate...

This paper seeks to distinguish the principles upon which testing of statistical hypotheses may be based and the practical method which these principles generate. Six examples are given for the case of nested hypotheses as illustrations. The concept of an artificial model is analyzed. When...

This paper examines the issue of simultaneity in the money demand equation of a small open economy by analyzing the implications of alternative exchange rate regimes. When simultaneous-bias arises, its direction and magnitude are empirical issues. A structurally stable money demand equation is...

This paper examines the consistency properties of some tests of a null model against a single non-nested alternative and against multiple non-nested alternatives (paired and joint tests, respectively). Consistency of the tests is evaluated. First, even when all possible paired comparisons are...

This paper derives a complete system of commodity-expenditure and money demand equations. This approach seeks to: 1) unify the treatment of joint intertemporal decisions regarding the allocation of income and savings to expenditures on commodities; 2) accommodate a treatment of durable goods; 3)...

This note applies the results of Milliken and Graybill (1970) to non-nested regression models. A test proposed by Fisher and McAleer (1981) is shown to have the t-distribution in small samples. An extended version of that test is developed for testing a model against several non-linear...

This paper demonstrates that the extended linear expenditure system with durables (DELES) satisfies first-order conditions for local unidentifiability, and discuss alternative methods that might be used to achieve identifiability, as well as their implications. Estimates are presented using...

This paper analyzes a systems approach to expenditure on different commodities by formulating DELES, the extended linear expenditure system with durable goods. The complete system is fitted to seasonally adjusted quarterly Australian data using full information maximum likelihood. The results...