Journal article

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

Abstract:: 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 fitted to I(1) data, and illustrates the analysis for US quarterly disposable income. The finite-sample properties of the encompassing tests are examined in a Monte Carlo experiment customized to the parameter values found in the empirical analysis.

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APA Style

Ermini, L., & Hendry, D. (2008). Log Income vs. Linear Income: An Application of the Encompassing Principle. Oxford Bulletin of Economics and Statistics, 70(s1), 807–827.

MLA Style

Ermini, L, and D Hendry. “Log Income vs. Linear Income: An Application of the Encompassing Principle.” Oxford Bulletin of Economics and Statistics, vol. 70, no. s1, 2008, pp. 807–27.

Chicago Style

Ermini, L, and D Hendry. 2008. “Log Income vs. Linear Income: An Application of the Encompassing Principle.” Oxford Bulletin of Economics and Statistics 70 (s1): 807–27.
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Publisher copy:: DOI: 10.1111/j.1468-0084.2008.00531.x

Authors

+ Ermini, L More by this author

Role:: Author

+ Hendry, D More by this author

Role:: Author

Publisher:: Blackwell Publishing
Journal:: Oxford Bulletin of Economics and Statistics More from this journal
Volume:: 70
Issue:: s1
Pages:: 807 - 827
Publication date:: 2008-01-01
DOI:: DOI: 10.1111/j.1468-0084.2008.00531.x
ISSN:: 0305-9049

Language:: English
UUID:: uuid:f0b77df1-a700-41da-9dbf-8c9d5fea1fd2
Local pid:: oai:economics.ouls.ox.ac.uk:11162
Deposit date:: 2011-08-16
ARK identifier:: ark:/29072/ora_f0b77df1a70041da9dbf8c9d5fea1fd2

Terms of use

Copyright date:: 2008

Licence:: Terms and Conditions of Use for Oxford University Research Archive

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