When Flexible Forms Are Asked to Flex Too Much
Taylor series-based flexible forms cannot be interpreted as Taylor series approximations unless all data used in estimation lie in a region of convergence. When flexible forms lose their Taylor series interpretation, elasticity estimates will be biased. When the flexible form is a translog, Rotterda...
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| Format: | Article |
| Language: | English |
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Western Agricultural Economics Association
1994-07-01
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| Series: | Journal of Agricultural and Resource Economics |
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| Online Access: | https://ageconsearch.umn.edu/record/31226 |