Finding the Functional Forms for Slowly Changing Dependencies
Olli Tapani Ropponen
Government of the Republic of Finland - Government Institute for Economic Research (VATT); University of Helsinki - Department of Political and Economic Studies
February 27, 2009
HECER Discussion Paper No. 253
This study introduces a two step method for finding the functional form for the model to be estimated. The proposed method allows us to get rid of the restrictions of the parallel model even when there are no interaction terms available. It is applicable in the cases where the dependencies change slowly. The method is applied to the data of Finnish Household Surveys.
Number of Pages in PDF File: 38
Keywords: Semiparametric Methods, Modelling, Consumption
JEL Classification: C14, C50, E21
Date posted: March 1, 2009
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