The Silence Bleating! Of the Lambdas: Comment

10 Pages Posted: 3 Apr 2020

Date Written: February 1998

Abstract

Alston and Chalfant…s least squares test for functional form is biased. A valid test is derived for both univariate and multivariate regression models. An estimation method to account for endogenous left‐ and right‐hand‐side current‐period budget shares in the Rotterdam and LA‐AIDS models is presented. Alston and Chalfant…s strenuous rejection of the LA‐AIDS model in favor of the Rotterdam model is not supported by their data.

Keywords: Almost Ideal Demand System, demand models, double length regressions, functional form, Lagrange multiplier tests, least squares, maximum likelihood, Rotterdam model, C520, D120, Q110

Suggested Citation

LaFrance, Jeffrey T., The Silence Bleating! Of the Lambdas: Comment (February 1998). American Journal of Agricultural Economics, Vol. 80, Issue 1, pp. 221-230, 1998, Available at SSRN: https://ssrn.com/abstract=3567270 or http://dx.doi.org/10.2307/3180283

Jeffrey T. LaFrance (Contact Author)

University of California, Berkeley ( email )

207 Giannini Hall / MC 3310
Berkeley, CA 94720
United States
510-643-5416 (Phone)
510-643-8911 (Fax)

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