A test of the adding up condition in demand systems is crucial for determining whether a share format is admissible when the number of sample goods is smaller than the number of commodity choices available to consumers. This test requires the estimation of a demand system in a quantity format....

This paper considers the estimation and testing of demand systems when the number of sample goods is smaller than the number of commodity choices available to consumers. In this case, the demand system is incomplete. The large majority of papers that appeared in the literature specifies and...

REVISED 4/2/2015. SEE WP-15-001 AT http://ageconsearch.umn.edu/handle/200491

The paper presents an estimator of the errors-in-variables in multiple regressions using only first and second-order moments. The consistency property of the estimator is explored by Monte Carlo experiments. Based on these results, we conjecture that the estimator is consistent. The proof of...

Increasing size of establishments and resulting concentration in US industries may stem from various types of cost economies. In particular, scale economies arising from technological factors embodied in plant and equipment may be a driving force for such market structure changes. In this case...

The International Coffee Agreement (ICA) used export quotas to restrict coffee trade in order to increase and stabilize the international price. A model of domestic pricing policy is developed which shows that the producer price should have fallen in response to ICA quotas. Econometric analysis...

Micro-economic models posit that transaction costs isolate subsistence producers from output market shocks. We integrate microeconomic models of many heterogeneous households into a general-equilibrium model and show that supply on subsistence farms may respond, in apparently perverse ways, to...

Expanding concentration in many industries has generated concern about the extent and determinants of these market structure patterns. Understanding such trends requires information on technological characteristics underlying cost efficiency. However, market structure and power analyses are...