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NOTE ON FINITE APPROXIMATIONS OF THE ASYMPTOTICALLY IDEAL MODEL

Published online by Cambridge University Press:  01 September 2008

Apostolos Serletis  and
Asghar Shahmoradi
Apostolos Serletis*
Affiliation:
University of Calgary
Asghar Shahmoradi
Affiliation:
University of Tehran
*
Address correspondence to: Apostolos Serletis, Department of Economics, University of Calgary, Calgary, Alberta, T2N 1N4, Canada; e-mail: Serletis@ucalgary.ca.
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Abstract

This note builds on recent work by Serletis and Shahmoradi [Macroeconomic Dynamics 9 (2005), 542–559] and estimates the AIM model at different degrees of approximation, using the same optimization procedures as in Gallant and Golub [Journal of Econometrics. 26 (1984), 295–321]. We estimate the models subject to regularity and provide a comparison between the different versions. We argue that the AIM(3) model estimated subject to global curvature currently provides the best specification for research in semiparametric modeling of consumer demand systems.

Keywords

Flexible Functional FormsAsymptotically Ideal ModelGlobal Curvature Restrictions
Type
Note
Information
Macroeconomic Dynamics , Volume 12 , Issue 4 , September 2008 , pp. 579 - 590
Copyright
Copyright © Cambridge University Press 2008

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References

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