Title
Functional Separability and the Existence of Consistent Aggregates in U.S. Manufacturing
Abstract
The traditional separability tests which are based on the translog production or cost function involve some drawbacks in terms of theoretical consistency as well as empirical implications. This study proposes a new method for testing functional separability, employing an indirect production function formulation and tests the existence of a consistent real value-added aggregate in U.S. manufacturing. Our approach provides a preferable alternative to the existing methods such as Berndt-Christensen's exact separability tests and Denny-Fuss' approximate separability tests in investigating the nature of separability.
Department(s)
Economics
Document Type
Article
DOI
https://doi.org/10.2307/2526942
Keywords
production functions, cost functions, aggregation, production costs, production technology, input prices, maximum likelihood estimation, linear separability, search services
Publication Date
1991
Recommended Citation
Yuhn, Ky-Hyang. "Functional Separability and the Existence of Consistent Aggregates in U.S. Manufacturing." International Economic Review 32, no. 1 (1991): 229-50.
Journal Title
International Economic Review
