THE BOX-COX METHODOLOGY: A 26-YEAR MISTAKE

The Box-Cox methodology has been extensively applied since it·was first introduced in 1964. This study establishes that the function currently used as a basis for implementing the Box-Cpx methodology is not a valid probability qensity function. The proper density function associated with the random variable underlying the Box-Cox methodology is derived.· Simulation evidence documents that the original Box-cox approach can result in considerable bias.


Issue Date:
Aug 05 1990
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/271037
Language:
English
Total Pages:
12




 Record created 2018-04-09, last modified 2020-10-28

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