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Duality methods for incomplete systems of consumer demand equations are adapted to the dual structure of variable cost functions in joint production. This allows identification of necessary and sufficient restrictions on technology and cost so that conditional factor demands can be written as...
Persistent link: https://www.econbiz.de/10009390701
Determining the impacts on consumers of governmental policies that affect the demand for food products requires a theoretically consistent micro-level demand model. We estimate a system of demands for weekly city-level dairy product purchases by nonlinear three-stage least squares to account for...
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Supply functions in the ubiquitous Gorman class are examined for their homogeneity properties. Homogeneity places surprisingly strong restrictions on functional forms. These forms facilitate testing of aggregability given homogeneity or homogeneity given aggregability or testing both. Copyright...
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Numéraire prices that are measured with error create challenges for econometric estimation. A straightforward approach for a model with linear input demands, such as generated from a quadratic normalized profit function, is proposed where the numéraire price is measured with error. Numéraire...
Persistent link: https://www.econbiz.de/10009397305
Alston and Chalfant&s least squares test for functional form is biased. A valid test is derived for both univariate and multivariate regression models. An estimation method to account for endogenous left- and right-hand-side current-period budget shares in the Rotterdam and LA-AIDS models is...
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