ALTERNATIVE ESTIMATION METHODS OF NONLINEAR DEMAND SYSTEMS
Oral Capps
Western Journal of Agricultural Economics, 1983, vol. 08, issue 01, 14
Abstract:
Several contemporary models of consumer demand comprise complete sets on nonlinear demand functions. Estimation methods should take into account parameter nonlinearity, cross-equation correlation, variance-covariance singularity of the disturbance terms, and various parameter restrictions. This paper presents a theoretical discussion and some empirical results using the maximum likelihood (ML) method and the iterative version of Zellner's seemingly unrelated regression (IZEF) method in the estimation of a nonlinear system of demand equations (the linear expenditure system) when the disturbance terms are both contemporaneously and serially correlated. On the basis of the evaluation of parameter estimates and their asymptotic standard errors as well as the cost of computation effort, the IZEF technique is preferred over the ML technique in this empirical problem.
Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Date: 1983
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)
Downloads: (external link)
https://ageconsearch.umn.edu/record/32484/files/08010050.pdf (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:ags:wjagec:32484
DOI: 10.22004/ag.econ.32484
Access Statistics for this article
More articles in Western Journal of Agricultural Economics from Western Agricultural Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().