Faculty Publications

Weak Separability Of Non-Tradables From Consumer Good Imports: A Simple Test With Evidence From Bangladesh

Document Type

Article

Keywords

Consumer good imports, F14, Import function, Multivariate cointegration, Non-tradables, Separability

Journal/Book/Conference Title

Economics Letters

Volume

63

Issue

2

First Page

225

Last Page

234

Abstract

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.

Department

Department of Economics

Original Publication Date

1-1-1999

DOI of published version

10.1016/s0165-1765(99)00030-0

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