Next Article in Journal
Transitional Intermittency Exponents Through Deterministic Boundary-Layer Structures and Empirical Entropic Indices
Previous Article in Journal
Action-Amplitude Approach to Controlled Entropic Self-Organization
Article Menu

Export Article

Open AccessArticle
Entropy 2014, 16(5), 2713-2728; doi:10.3390/e16052713

Non-Extensive Entropy Econometrics: New Statistical Features of Constant Elasticity of Substitution-Related Models

University of Information Technology and Management, ul. Sucharskiego 2, Rzeszow 35225, Poland
Received: 23 February 2014 / Revised: 18 April 2014 / Accepted: 12 May 2014 / Published: 16 May 2014
View Full-Text   |   Download PDF [503 KB, 24 February 2015; original version 24 February 2015]   |  

Abstract

Power-law (PL) formalism is known to provide an appropriate framework for canonical modeling of nonlinear systems. We estimated three stochastically distinct models of constant elasticity of substitution (CES) class functions as non-linear inverse problem and showed that these PL related functions should have a closed form. The first model is related to an aggregator production function, the second to an aggregator utility function (the Armington) and the third to an aggregator technical transformation function. A q-generalization of K-L information divergence criterion function with a priori consistency constraints is proposed. Related inferential statistical indices are computed. The approach leads to robust estimation and to new findings about the true stochastic nature of this class of nonlinear—up until now—analytically intractable functions. Outputs from traditional econometric techniques (Shannon entropy, NLLS, GMM, ML) are also presented. View Full-Text
Keywords: inverse problem; q-generalization of K-L information divergence; constant elasticity of substitution functions; econometrics inverse problem; q-generalization of K-L information divergence; constant elasticity of substitution functions; econometrics
This is an open access article distributed under the Creative Commons Attribution License (CC BY 3.0).

Supplementary material

Scifeed alert for new publications

Never miss any articles matching your research from any publisher
  • Get alerts for new papers matching your research
  • Find out the new papers from selected authors
  • Updated daily for 49'000+ journals and 6000+ publishers
  • Define your Scifeed now

SciFeed Share & Cite This Article

MDPI and ACS Style

Bwanakare, S. Non-Extensive Entropy Econometrics: New Statistical Features of Constant Elasticity of Substitution-Related Models. Entropy 2014, 16, 2713-2728.

Show more citation formats Show less citations formats

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Entropy EISSN 1099-4300 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top