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Testing the Validity of Aggregates

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  • Aizcorbe, Ana M

Abstract

Ths article develops a new approach for testing aggregation restrictions in estimated production-function and cost-function models. Rather than using the well-known separability conditions for the existence of an aggregate, this approach focuses on testng whether a particular aggregate is valid and develops empirically testable necessary and sufficient conditions for the validity of some known aggregation scheme. An empirical section examines the power of this test in the context of a simple production-function model.

Suggested Citation

  • Aizcorbe, Ana M, 1990. "Testing the Validity of Aggregates," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(4), pages 373-383, October.
    • Handle: RePEc:bes:jnlbes:v:8:y:1990:i:4:p:373-83
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    Cited by:

    1. Chabaud, Didier & Sattin, Jean-François, 2019. "Back to the roots! Testing Miller's entrepreneurial orientation construct using Sono-Leontief conditions," Journal of Business Venturing Insights, Elsevier, vol. 11(C), pages 1-1.
    2. Robert H. McGuckin & Kevin Stiroh, 2000. "Computers and Productivity: Are Aggregation Effects Important?," Economics Program Working Papers 00-03, The Conference Board, Economics Program.

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