Maximum likelihood and two-step estimators of censored demand systems yield biased and inconsistent parameter estimates when the assumed joint distribution of disturbances is incorrect. This paper proposes a semiparametric estimator that retains the computational advantage of the two-step...

Household diversification into nonfarm work activities is a major rural livelihood strategy in many developing economies. In this paper, we explore empirically if rural households in Uganda leverage their nonfarm earnings to overcome credit constraints and invest in high-yielding maize seed...