Inferential methods for elasticity estimates

Hirschberg, Joe; Lye, Jenny; Slottje, Daniel J.

doi:10.1016/j.jeconom.2008.09.037

Cited by 8 publications

(7 citation statements)

References 45 publications

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“…, provided that the latter is defined, i.e., that its denominator is non null [10]. Further, the couple ( )…”

Section: The Delta-methods Confidence Intervalmentioning

confidence: 99%

“…, . It is worth noting here that if the non-centered regression is used instead, a similar equation in matrix form determines the bounds of the Fieller confidence interval [19]. The conditions determining the nature and the signs of the roots of ( )…”

Section: The Fieller-methods Confidence Intervalmentioning

confidence: 99%

“…Hence, a byproduct of the proposed method is that it also provides a simpler alternative, and numerically equivalent way to compute the variability parameter. The analysis conducted in this paper is of potential interest to any application involving elasticity estimates and it falls in the literature on elasticity estimation, as illustrated in [8] [9] [10] and the references therein.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Computing Confidence Intervals for the Postal Service’s Cost-Elasticity Estimates

Lyudmila¹,

Cigno²,

Namoro³

2021

OJS

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This paper provides methods for assessing the precision of cost elasticity estimates when the underlying regression function is assumed to be polynomial. Specifically, the paper adapts two well-known methods for computing confidential intervals for ratios: the delta-method and the Fieller method. We show that performing the estimation with mean-centered explanatory variables provides a straightforward way to estimate the elasticity and compute a confidence interval for it. A theoretical discussion of the proposed methods is provided, as well as an empirical example based on publicly available postal data. Possible areas of application include postal service providers worldwide, transportation and electricity.

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“…, provided that the latter is defined, i.e., that its denominator is non null [10]. Further, the couple ( )…”

Section: The Delta-methods Confidence Intervalmentioning

confidence: 99%

Section: The Fieller-methods Confidence Intervalmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Computing Confidence Intervals for the Postal Service’s Cost-Elasticity Estimates

Lyudmila¹,

Cigno²,

Namoro³

2021

OJS

View full text Add to dashboard Cite

show abstract

“…First we present the line plot approach that can be used to determine the nature of the Fieller solution when the roots of the implied quadratic are complex. This alternative has been presented in Hirschberg et al 2008, Hirschberg and Lye 2010a, 2017 for ratios and other functions of parameters from regression equations. In the second we present the inferences that may be drawn with different values of α and can be useful to highlight the divergence between the Fieller and Delta CIs as proposed by Cook and Weisberg (1990).…”

Section: Alternate Graphical Representations Of the Fieller And Delta...mentioning

confidence: 99%

Inverting the indirect—The ellipse and the boomerang: Visualizing the confidence intervals of the structural coefficient from two-stage least squares

Hirschberg

Lye

2017

Journal of Econometrics

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“…In defining the general form of Fieller's method for the construction of confidence intervals for ratios of linear functions of regression parameters Rao (1973) and Zerbe (1978) obtain equivalent expressions (equations 4b.2.16 and 2.5-2.7 respectively). Applications of the Fieller technique for the inferences for varying income elasticities from Engle curve estimation can be found in Hirschberg et al (2008).…”

Section: Introductionmentioning

confidence: 99%

Inverse Test Confidence Intervals for Turning-Points: A Demonstration with Higher Order Polynomials

Lye¹,

Hirschberg²

2012

Advances in Econometrics

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In this paper we demonstrate the construction of inverse test confidence intervals for the turning points in estimated nonlinear relationships by the use of the marginal or first derivative function. First, we outline the inverse test confidence interval approach. Then we examine the relationship between the traditional confidence intervals based on the Wald test for the turning-points for a cubic, a quartic and fractional polynomials estimated via regression analysis and the inverse test intervals. We show that the confidence interval plots of the marginal function can be used to estimate confidence intervals for the turning points that are equivalent to the inverse test. We also provide a method for the interpretation of the confidence intervals for the second derivative function to draw inferences for the characteristics of the turning-point. This method is applied to the examination of the turning points found when estimating a quartic and a fractional polynomial from data used for the estimation of an Environmental Kuznets Curve. The Stata do files used to generate these examples are listed in the appendix along with the data.

show abstract

Inferential methods for elasticity estimates

Cited by 8 publications

References 45 publications

Computing Confidence Intervals for the Postal Service’s Cost-Elasticity Estimates

Computing Confidence Intervals for the Postal Service’s Cost-Elasticity Estimates

Inverting the indirect—The ellipse and the boomerang: Visualizing the confidence intervals of the structural coefficient from two-stage least squares

Inverse Test Confidence Intervals for Turning-Points: A Demonstration with Higher Order Polynomials

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