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Using a flexible functional form specification, they obtain elasticities that vary according to the size and specific characteristics of the farm, and thus the quantitative effect of various factors on revenue can be analysed according to farm size.
This difference between the two decompositions could not necessarily be due to the fact that the Blinder-Oaxaca decomposition ignores the common support assumption; it could well be that by assuming linearity we are committing a functional form specification error.
To check for robustness against functional form specification, we also analyze mortality using fixed effects linear probability models.
The reduced form specification also allows us to look at the effect of father's education independently of the sorting and selection into marriage.
The dataset contains all individual delivery information including product name, purchase date, dosage form, specification, manufacturer, unit price, and purchase volume, which was collated from the hospital's procurement records.
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A detailed discussion about potential problems with the functional form specifications of linear models in the context of training programs can be found in Frazis and Loewenstein (2005).
This model is a reduced-form specification of the general internal migration model introduced in Greenwood (1975).
In other words, to obtain per-capita household income, we predict per-capita income levels for households on the basis of a reduced-form specification for the determinants of household's income.
Note, however, that the log-gamma GLM, PGLM/EEE (QV) and identity-Gaussian GLM models listed in Table 3 all passed the following goodness-of-fit tests: Pearson's test for correlation between raw-scale predictions and residual errors, Pregibon's link test for functional-form specification; and modified Hosmer-Lemeshow tests for systematic patterns in the error residuals.
The data contains all individual procurement information including product names, purchase dates, dosage forms, specifications, manufacturers, unit prices and volumes.
The merit of this approximation is that it neither imposes any rigid functional form of specification on the structure of utility function nor assumes a specific form of the demand system, for example, a double-log demand model.
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CEO of Professional Science Editing for Scientists @ prosciediting.com