Weak separability of non-tradables from consumer good imports: A simple test with evidence from Bangladesh
Consumer good imports, F14, Import function, Multivariate cointegration, Non-tradables, Separability
The price of non-tradables is excluded from the price vector of the standard specification of import functions by invoking weak separability. This paper argues that the standard model is misspecified and the test of separability of non-tradables used in the literature is inappropriate. A theoretically consistent test is developed and applied to the case of consumer good imports of Bangladesh. © Elsevier Science S.A.
Original Publication Date
DOI of published version
Emran, Shahe and Alam, Imam, "Weak separability of non-tradables from consumer good imports: A simple test with evidence from Bangladesh" (1999). Faculty Publications. 3797.