Consistent Estimation of Censored Demand Systems Using Panel Data
We derive a joint continuous/censored commodity demand system for panel data applications. Unobserved heterogeneity is controlled for using a correlated random effects specification and a generalized method of moments framework used to estimate the model. While relatively small differences in elasticity estimates are found between a flexible random effects specification and one that restricts the random effect coefficient to be time invariant, larger differences are observed when comparing the flexible model to a pooled cross-sectional estimator. The results suggest the limited ability of such estimators to control for preference heterogeneity and unit-value endogeneity leads to parameter bias. Copyright 2005, Oxford University Press.
Year of publication: |
2005
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Authors: | Sahn, David E. |
Published in: |
American Journal of Agricultural Economics. - Agricultural and Applied Economics Association - AAEA. - Vol. 87.2005, 3, p. 660-672
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Publisher: |
Agricultural and Applied Economics Association - AAEA |
Saved in:
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