Theoretical constraints on economic model parameters often are in the form of inequality restrictions. For example, many theoretical results are in the form of monotonicity or nonnegativity restrictions. Inequality constraints can truncate sampling distributions of parameter estimators, so that...

Among the many demand specifications in the literature, the Rotterdam model and the Almost Ideal Demand System (AIDS) have particularly long histories, have been highly developed, and are often applied in consumer demand systems modeling. Using Monte Carlo techniques, we seek to determine which...

Using Hansen (1999)'s threshold estimation technique and PSID dataset for the waves of 2001, 2003 and 2005, we estimate the effects of the fluctuations in financial wealth on the consumption behavior of households for different endogenously determined income groups. We found a threshold income...