Testing for asymmetric price transmission and calculating elasticities of price transmission are of great importance in applied economics. We analyze the behavior of tests for asymmetry according to the conventional Houck approach and to the von Cramon-Taubadel and Loy error correction model...

In the paper, we use a panel data approach to study the threshold effects and nonlinearity in economic growth instead of the cross-sectional approach commonly used in previous studies. The methodologies developed by Hansen (2000) and Caner and Hansen (2004) are applied to identify threshold...

Soil is a capital asset and a renewable resource that requires continued maintenance to ensure the sustainability of agricultural output in the long-run. Growers are continually adjusting the soil's productivity by adding and extracting soil nutrients, and modifying the soil structure through...

Basic economic theory predicts that a consumer's willingness to pay for a good is affected by the presence of complements and substitutes. In an auction setting, this theory implies that the presence of complements would increase bid prices for a good, while the presence of substitutes would...

Retailers use sales "price promotions" for a number of potential reasons. There is relatively little research, however, on their strategic role among frequently consumed perishable products. Using a two-stage, nested logit model of retail equilibrium, we show that promotion will be most...

Flexible functional forms are used to examine the characteristics of production technologies. The Fourier functional form is capable of approximating any function globally, with the specified expansion. Unfortunately the exact form of the expansion is not known. The regularity conditions are...

This paper determines the set of parametric restrictions required to maintain flexibility under asymmetric weak separability for the flexible and separable translog (FAST) multistage demand system. Because there is not a unique set of parametric restrictions that ensures separability and the...

An updated supply of storage equation is estimated to reflect recent developments in the theoretical and empirical literature. Among the findings is an inverse relationship between storage cost adjusted price spread and a proxy measure of convenience yield, and a curvilinear relationship between...

The estimation of allocative and technical inefficiency has grown to an enormous body of literature, both theoretical and empirical. Ideally, one would estimate time-varying firm and input-specific parameters describing allocative inefficiency in order to minimize aggregation bias. However, this...

Derived demand relationships among four weight categories of feeder cattle entering Texas feedlots and feed were examined using a Generalized McFadden dual cost function specified as an error correction model. Relationships among own- and cross-price elasticities provide evidence for at least...