Showing 1 - 10 of 14
Persistent link: https://www.econbiz.de/10005384617
This paper shows that there exists a relatively simple demand model that is consistent with utility maximization, and has nested within it both the almost ideal demand system and translog models. This model is exactly aggregated, then estimated using aggregate U.S. demand data. The results are...
Persistent link: https://www.econbiz.de/10005384763
Let "y" be a vector of endogenous variables and let "w" be a vector of covariates, parameters, and errors or unobservables that together are assumed to determine "y". A structural model <formula format="inline"> <simplemath>"y"&equals;"H"("y", "w") </simplemath> </formula> is complete and coherent if it has a well-defined reduced form, meaning that for any...
Persistent link: https://www.econbiz.de/10005384836
Fractional demand systems are utility derived demands having quantities or budget shares proportional to ag + bf, where g and f are functions of income and a and b vary across goods and are functions of prices. Many known demand systems that have large regular regions are fractional. This paper...
Persistent link: https://www.econbiz.de/10005401041
The share of household resources devoted to children is hard to identify because consumption is measured at the household level and goods can be shared. Using semiparametric restrictions on individual preferences within a collective model, we identify how total household resources are divided up...
Persistent link: https://www.econbiz.de/10010815690
Microeconomic theory often yields models with multiple nonlinear equations, nonseparable unobservables, nonlinear cross equation restrictions, and many potentially multicolinear covariates. We show how statistical dimension reduction techniques can be applied in models with these features. In...
Persistent link: https://www.econbiz.de/10010932056
We invent Implicit Marshallian demands, which combine desirable features of Hicksian and Marshallian demands. We propose and estimate the Exact Affine Stone Index (EASI) implicit Marshallian demand system. Like the Almost Ideal Demand (AID) system, EASI budget shares are linear in parameters...
Persistent link: https://www.econbiz.de/10005014634
Latent variable discrete choice model estimation and interpretation depend on the density function of the latent variable's unobserved random component. This paper provides a simple semiparametric estimator of the moments of this density. The results can be used as starting values for parametric...
Persistent link: https://www.econbiz.de/10005104538
Persistent link: https://www.econbiz.de/10005104607
Persistent link: https://www.econbiz.de/10005610314