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  6. Estimation of Censored La/Aids Model With Endogenous Unit Values

Estimation of Censored La/Aids Model With Endogenous Unit Values

File(s)
Cornell_Dyson_rb0308.pdf (428.34 KB)
Permanent Link(s)
https://hdl.handle.net/1813/65043
Collections
Dyson School Research Bulletins
Author
Dong, Diansheng
Kaiser, Harry M.
Myrland, Oystein
Abstract

In this study, we develop and estimate a censored LA/AIDS model using household-level purchase data. In addition to imposing non-negativitity constraints, we account for the endogeneity of unit value. We address the non-negativity issue using an Amemiya-Tobin approach, which imposes the adding-up condition on both observed and latent shares. We address the endogeneity of unit value by estimating share equations and unit value equations simultaneously. Given the need to evaluate high-order probability integrals, we use a simulated probability method in the model estimation. This model is applied to estimate and analyze a demand system featuring six fish and three meat commodities, using Norwegian household data.

Description
R.B. 2003-08
Date Issued
2003-10
Publisher
Charles H. Dyson School of Applied Economics and Management, Cornell University
Keywords
Applied Economics
Type
report

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