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In this paper, we unify and extend the analytical and empirical application of the ”indirect addilog” expenditure system, introduced by Leser (1941), Somermeyer- Wit (1956) and Houthakker (1960). Using the Box-Cox transform, we present a parametric analysis of the Houthakker specification of...
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Tilanus's 'mixed' input-output coefficients are generalized and it is shown that the generalized coefficients stand in a fixed proportion to each other if and only if the technology is described by Hanoch 's linear homogeneous constant differences of elasticities of substitution production function.
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In de Boer (2008), additive decompositions of aggregate changes in a variable into its factors were considered. We proposed using the 'ideal' Montgomery decomposition, developed in index number theory as an alternative to the commonly used methods in structural decomposition analysis, and...
Persistent link: https://www.econbiz.de/10004966754
In recent years, a large number of empirical articles on structural decomposition analysis, which aims at disentangling an aggregate change in a variable into its r factors, has been published in this journal. Commonly used methods are the average of the two polar decompositions and the average...
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We try to argue that in a computable general equilibrium model, household preferences should be modeled by the indirect addilog system (IAS), exhibiting constant differences of elasticity of substitution (CDES), rather than by the frequently used linear expenditure system (LES). Both systems...
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