Standard errors for elasticities: A comparison of bootstrap and asymptotic standard errors

Richard Green, William Hahn, David M Rocke

Research output: Contribution to journalArticle

35 Citations (Scopus)

Abstract

This article compares two methods of deriving standard errors for elasticities in a linear expenditure demand system with first-order autoregressive errors. The first is the ordinary Taylor series method and the second is Efron’s bootstrap. In an example problem, these two methods yielded similar values for the standard errors, with the exception of the income elasticity standard errors, for which the asymptotic standard errors were apparently too large by a factor of two.

Original languageEnglish (US)
Pages (from-to)145-149
Number of pages5
JournalJournal of Business and Economic Statistics
Volume5
Issue number1
DOIs
StatePublished - 1987

Fingerprint

Standard error
Bootstrap
Elasticity
Taylor series
Exception
First-order
expenditures
income
demand
Values

Keywords

  • Demand systems
  • Linear expenditure system

ASJC Scopus subject areas

  • Statistics and Probability
  • Economics and Econometrics
  • Statistics, Probability and Uncertainty
  • Social Sciences (miscellaneous)

Cite this

Standard errors for elasticities : A comparison of bootstrap and asymptotic standard errors. / Green, Richard; Hahn, William; Rocke, David M.

In: Journal of Business and Economic Statistics, Vol. 5, No. 1, 1987, p. 145-149.

Research output: Contribution to journalArticle

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