A CRITIQUE OF THE CONSTANT ELASTICITY OF TRANSFORMATION (CET) LINEAR SUPPLY SYSTEM

An elusive restriction maintained in earlier CET supply models with three or more products is shown to result in a potentially serious misspecification. Its impact on empirical estimates is found to be substantial, and an alternative formulation is presented which overcomes the problem while still maintaining the CET hypothesis.


Issue Date:
1984-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/32129
Published in:
Western Journal of Agricultural Economics, Volume 09, Number 2
Page range:
314-321
Total Pages:
8




 Record created 2017-04-01, last modified 2017-04-27

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