The three-dimensional global properties of the minflex Laurent, generalized Leontief, and translog flexible functional forms (Q1083989)

We use \textit{D. W. Caves} and \textit{L. R. Christensen} [see Am. Econ. Rev. 70, 422-432 (1980)] to produce the regular regions of three flexible functional forms: generalized Leontief, translog, and Barnett's new minflex Laurent model. We display the regular regions in six cases with three goods using both three-dimensional color graphics and two- dimensional sections. We find that minflex Laurent generally has the largest regular region. In addition, the regular regions of that model are the most stable in shape across the six cases and always expand as real income increases. Consequently that model is especially well suited for use with income-trended time series data.