On the Empirical Content of Demand Analysis

Falsification of nontrivial empirical statements, of a statistical nature or not, is basically destructive. No wonder that it is rarely practiced. Rather than then abandoning a rejected null hypothesis, one tries to salvage it by looking for reasons why the rejection of an otherwise credible, plausible hypothesis occurs. One then attempts to modify the set-up in such a manner that formal rejection is avoided. Testing, in general, but specifically of nonnested hypotheses, can be seen as a kind of model selection. These issues are illustrated with examples from applied demand analysis: the testing of the homogeneity condition and of Slutsky symmetry and the choice of functional form for demand systems.


Issue Date:
2003
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/43219
Published in:
Journal of Agricultural and Applied Economics, Volume 35, Supplement
Page range:
7-17
Total Pages:
11




 Record created 2017-04-01, last modified 2017-08-25

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