Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192514 
Authors: 
Year of Publication: 
2008
Series/Report no.: 
Discussion Papers No. 532
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
Estimation of standard errors of Engel elasticities within the framework of a linear structural model formulated on two-wave panel data is considered. The complete demand system is characterized by measurement errors in total expenditure and by latent preference variation. The estimation of the parameters as well as the standard errors of the estimates is based on the assumption that the variables are normally distributed. Considering a concrete case it is demonstrated that normality does not hold as a maintained assumption. In the light of this standard errors are estimated by means of bootstrapping. However, one obtains rather similar estimates of the standard errors of the Engel elasticities no matter whether one sticks to classical normal inference or perform non-parametric bootstrapping.
Subjects: 
Engel elasticities
standard errors
classical normal theory
bootstrapping
JEL: 
C13
C14
C15
C33
D12
Document Type: 
Working Paper

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