The present paper presents a generalised class of cost functions suitable for aggregation of firms and considers various flexible functional forms to assess whether they possess desirable aggregation properties. This set of cost functions includes two output functions and subsumes linear and...

This note examines several alternative specifications of the consumer's intertemporal budget constraint and shows that while different specifications give the same first-order conditions, they produce different results with respect to measures of wealth and saving and hence consumption when...

This paper presents an alternative characterization of separability based on elasticities of complementarity. Earlier studies have formulated separability restrictions in terms of the Allen elasticities of substitution. The Hicks and Antonelli elasticities of complementarity are presented to...

This article investigates the dependence structure of income distribution in the US by providing two approaches -- one regression-based and the other copula-based -- to reveal new information about income dependence. The system of Seemingly Unrelated Regressions (SUR) is estimated for both...

This article presents a new, cointegration approach to test a tax arbitrage opportunity in holding municipal bonds. Noticing that the variables of interest are nonstationary, two alternative cointegration tests are used to examine the relationship that may exist (1) between the yield on...

This paper integrates two strands of studies on consumer demand and consumption and provides a unified framework for analyzing consumer behavior employing an intertemporal two-stage budgeting procedure. We take a modified AIDS framework for the demand system and derive a general Euler equation...