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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Official URL: http://dx.doi.org/10.1002/jae.1229
Abstract
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.
Item Type: | Article |
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Schools: | Schools > Salford Business School > Salford Business School Research Centre |
Journal or Publication Title: | Journal of Applied Econometrics |
Publisher: | Wiley |
Refereed: | Yes |
ISSN: | 0883-7252 |
Related URLs: | |
Funders: | Non funded research |
Depositing User: | Dr Kai Sun |
Date Deposited: | 29 May 2015 17:20 |
Last Modified: | 16 Feb 2022 16:31 |
URI: | http://usir.salford.ac.uk/id/eprint/34568 |
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