Bayes' Estimates of the Double Hurdle Model in the Presence of Fixed Costs
dc.contributor.author | Holloway, Garth J. | |
dc.contributor.author | Barrett, Christopher B. | |
dc.contributor.author | Ehui, Simeon K. | |
dc.date.accessioned | 2018-08-21T17:11:07Z | |
dc.date.available | 2018-08-21T17:11:07Z | |
dc.date.issued | 2002-12 | |
dc.description | WP 2002-42 December 2002 | |
dc.description.abstract | We 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.uri | https://hdl.handle.net/1813/58062 | |
dc.language.iso | en_US | |
dc.publisher | Charles H. Dyson School of Applied Economics and Management, Cornell University | |
dc.subject | market participation | |
dc.subject | fixed costs | |
dc.subject | double-hurdle model | |
dc.subject | censored regression | |
dc.title | Bayes' Estimates of the Double Hurdle Model in the Presence of Fixed Costs | |
dc.type | article | |
dcterms.license | http://hdl.handle.net/1813/57595 |
Files
Original bundle
1 - 1 of 1