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Applied Economics Letters Volume 12, 2005 - Issue 12
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Original Articles

An application of the residual deviance analysis in testing input separability restrictions

Morteza Haghiri Department of Economics, Mount Allison University, 144 Main Street, Sackville, New Brunswick, Canada, E4L 1A7Correspondence[email protected]
&
Alireza Simchi Department of Mathematical and Statistical Sciences, University of Alberta, 632 Central Academic Building, Edmonton, Alberta, Canada, T6G 2G1
Pages 755-758 | Published online: 21 Aug 2006
 
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Abstract

Using the analysis of residual deviance, the separability of input in the Quebec dairy industry between 1990 and 1998 is examined. A nonparametric production regression function based on the theory of generalized additive models is estimated by using the spline smoothing approach. Results support that all additive inputs are separable.

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