Likelihood-based inference for regular functions with fractional polynomial approximations
- Publication Type:
- Journal Article
- Journal of Econometrics, 2014, 183 (1), pp. 22 - 30
- Issue Date:
Copyright Clearance Process
- Recently Added
- In Progress
- Closed Access
This item is closed access and not available.
© 2014 Elsevier B.V. All rights reserved. This paper shows that regular fractional polynomials can approximate regular cost, production and utility functions and their first two derivatives on closed compact subsets of the strictly positive orthant of Euclidean space arbitrarily well. These functions therefore can provide reliable approximations to demand functions and other economically relevant characteristics of tastes and technology. Using canonical cost function data, it shows that full Bayesian inference for these approximations can be implemented using standard Markov chain Monte Carlo methods.
Please use this identifier to cite or link to this item: