Search

Dominance test methods have three inherent weaknesses that may affect the validity of econometric analysis. The first focuses on limitations on the distribution functions that are utilized as basis for tests. The second refers to the inappropriateness of existing methods for testing data that show weak relationships between samples or dependence within samples. The third weakness refers to the improper specification of the null hypothesis.

An overview of a study regarding various econometric methods utilizing least squares techniques is presented. These methods have various characterizations, such as generalized instrumental variables estimation, the generalized method of moments and the generalized minimum chi-square estimation. The freedom equation method to restricted estimation is given importance. Moreover, unrestricted estimation is never more efficient than restricted estimation.

Provides estimates of the Linear Expenditure System, Extended Linear Expenditure System and the Extended Linear Expenditure System with Durables. Purpose of the exercise; Equation of the linear expenditure family; Details on empirical results; Conclusion.