Agricultural Economics Research Vol 31 PDF Download

Excerpt from Agricultural Economics Research, Vol. 31: April 1979 The objectives of this article are (1) to examine differences in esti mated household size and income elasticities generated by different functional forms including quadratic and (2) to compare the ability of different functional forms to fit ungrouped data. Results should provide a better understanding of the relationship between functional form and estimated income and household size elasticities. In addition, since one criterion for selecting functional forms is goodness of fit, the study should indicate which forms are most appropriate for estimating Engel relationships. The interpretation of this measure of goodness of fit varies, depending on whether the dependent variable is transformed before estimation. For example, for the double logarithmic functional form, the computed corre lation coefficient measures the corre lation between the natural logarithm of observed expenditure (quantity) and the predicted value for the natural logarithm of expenditure (quantity). However, for the linear functional form, the correlation coefficient measures the correlation between observed expenditure (quantity) and predicted expenditure (quantity). Thus, a more consistent measure of goodness of fit would be to trans form the predicted values for the double logarithmic functional form to natural numbers before comput ing the correlation coefficient. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.