The purpose of this paper is to present full information maximum likelihood estimates of linear expenditure systems (LES) and to test for habit formation, autocorrelation, and regularity conditions using the likelihood ratio procedure. Estimators for the model and associated tests are based on annual Canadian data for the years 1957-1972.
Original Title
Testing for Habit Formation, Autocorrelation and Theoretical Restrictions in Linear Expenditure Systems
The purpose of this paper is to present full information maximum likelihood estimates of linear expenditure systems (LES) and to test for habit formation, autocorrelation, and regularity conditions using the likelihood ratio procedure. Estimators for the model and associated tests are based on annual Canadian data for the years 1957-1972.
The purpose of this paper is to present full information maximum likelihood estimates of linear expenditure systems (LES) and to test for habit formation, autocorrelation, and regularity conditions using the likelihood ratio procedure. Estimators for the model and associated tests are based on annual Canadian data for the years 1957-1972.