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Summarizing Curvature Conditions For Flexible Functional Forms

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  • Chen, Adam Zhuo
  • Huffman, Wallace E.

Abstract

This article suggests that the two current approaches of summarizing curvature conditions for certain flexible function forms are neither intuitive nor robust to skewed distribution of exogenous variables. They also ignore the possible correlation pattern between exogenous variables. Arguing that the purpose of summarizing curvature condition is to provide either the changes of aggregated dependent variable with respect to a change of explanatory variable, or curvature conditions of a representative individual, this article proposes two methods to address this issue.

Suggested Citation

  • Chen, Adam Zhuo & Huffman, Wallace E., 2004. "Summarizing Curvature Conditions For Flexible Functional Forms," 2004 Annual meeting, August 1-4, Denver, CO 20013, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:20013
    DOI: 10.22004/ag.econ.20013
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    Research Methods/ Statistical Methods;

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