Log Income vs. Linear Income: An Application of the Encompassing Principle.

Log Income vs. Linear Income: An Application of the Encompassing Principle.

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An open question in empirical economics is whether models should be estimated by using the actual, or linear, values of economic variables or their logarithms. This paper applies the principle of encompassing to suggest specification and mis-specification tests of log vs. linear individual equations...

Disgrifiad llawn

Manylion Llyfryddiaeth
Prif Awduron:	Ermini, L, Hendry, D
Fformat:	Journal article
Iaith:	English
Cyhoeddwyd:	Blackwell Publishing 2008

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