Kao, Chihwa; Lee, Lung-fei; Pitt, Mark M. - In: Annals of Economics and Finance 2 (2001) 1, pp. 215-235
This paper discusses issues on the estimation of consumer demand equations subject to binding non-negative constraints. We propose computationally feasible specifications and a simulated maximum likelihood (SML) method for demand systems. Our study shows that the econometric implementation of...