Byrne, David; Imai, Susumu; Sarafidis, Vasilis; … - 2015
We propose a new methodology for estimating the demand and cost functions of differentiated products models when demand … and cost data are available. The method deals with the endogeneity of prices to demand shocks and the endogeneity of … where instruments are correlated with demand and cost shocks, and where commonly-used instrumental variables estimators are …