HECER Discussion Paper No. 253
38 Pages Posted: 1 Mar 2009
Date Written: February 27, 2009
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.
Keywords: Semiparametric Methods, Modelling, Consumption
JEL Classification: C14, C50, E21
Suggested Citation: Suggested Citation
Ropponen, Olli Tapani, Finding the Functional Forms for Slowly Changing Dependencies (February 27, 2009). HECER Discussion Paper No. 253. Available at SSRN: https://ssrn.com/abstract=1350197 or http://dx.doi.org/10.2139/ssrn.1350197