Abstract
It has been demonstrated that the coefficients of the non-multiplicative terms of a multiplicative-logarithmic function are dependent on the units used. In addition, Dickey-Fuller tests on the multiplicative terms are unit sensitive. It is demonstrated that a simple transformation circumvents these problems. It is still true that individual coefficients of logarithmic variables in such functions are meaningless and that the Dickey-Fuller test is disturbingly arbitary. However, the transformation appears to increase the meaningfulness of a technical change trend in a translog cost function.
| Original language | English |
|---|---|
| Pages (from-to) | 451-454 |
| Number of pages | 4 |
| Journal | Applied Economics |
| Volume | 27 |
| Issue number | 5 |
| DOIs | |
| Publication status | Published - 1 May 1995 |
| Externally published | Yes |