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Bayes' Estimates of the Double Hurdle Model in the Presence of Fixed Costs

dc.contributor.authorHolloway, Garth J.
dc.contributor.authorBarrett, Christopher B.
dc.contributor.authorEhui, Simeon K.
dc.date.accessioned2018-08-21T17:11:07Z
dc.date.available2018-08-21T17:11:07Z
dc.date.issued2002-12
dc.descriptionWP 2002-42 December 2002
dc.description.abstractWe present a model of market adoption (participation) where the presence of non-negligible fixed costs leads to non-zero censoring of the traditional double-hurdle regression. Fixed costs arise due to household resources that must be devoted a priori to the decision to participate in the market. These costs-usually a cost of time-motivate two-step decision-making and focus attentions on the minimum-efficient scale of operations (the minimum amount of milk sales) at which market entry becomes viable. This focus, in turn, motivates a non-zero-censored Tobit regression estimated through routine application of Markov chain Monte Carlo Methods.
dc.identifier.urihttps://hdl.handle.net/1813/58062
dc.language.isoen_US
dc.publisherCharles H. Dyson School of Applied Economics and Management, Cornell University
dc.subjectmarket participation
dc.subjectfixed costs
dc.subjectdouble-hurdle model
dc.subjectcensored regression
dc.titleBayes' Estimates of the Double Hurdle Model in the Presence of Fixed Costs
dc.typearticle
dcterms.licensehttp://hdl.handle.net/1813/57595

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