Biases in approximating log production
Sun, K, Henderson, DJ and Kumbhakar, SC 2011, 'Biases in approximating log production' , Journal of Applied Econometrics, 26 (4) , pp. 708-714.
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Most empirical work in economic growth assumes either a Cobb–Douglas production function expressed in logs or a log-approximated constant elasticity of substitution specification. Estimates from each are likely biased due to logging the model and the latter can also suffer from approximation bias. We illustrate this with a successful replication of Masanjala and Papagerogiou (2004) and then estimate both models in levels to avoid these biases. Our estimation in levels gives results in line with conventional wisdom.
|Schools:||Schools > Salford Business School > Business and Management Research Centre|
|Journal or Publication Title:||Journal of Applied Econometrics|
|Funders:||Non funded research|
|Depositing User:||Dr Kai Sun|
|Date Deposited:||29 May 2015 17:20|
|Last Modified:||29 Oct 2015 00:47|
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