Estimation of a Censored AIDS Model: A Simulated Amemiya-Tobin Approach

Diansheng Dong () and Harry Kaiser

No 122113, Research Bulletins from Cornell University, Department of Applied Economics and Management

Abstract: Kuhn-Tucker approach and its dual have been proposed to the demand system estimation when there are non-negativity bindings. However, empirical researchers have been struggling two decades in applying this method into practice due to: (1) the difficulty in derivation of a coherent econometric model, and (2) the cumbersome evaluation of high order probability integrals needed in parameter estimation. In this paper, we avoid the above two issues by using the Amemiya-Tobin demand system approach and the simulation procedure to evaluate the probability integrals. An AIDS model is estimated and the elasticities are obtained that are impossible to achieve when using Kuhn-Tucker approach. The model is applied to an analysis of Canadian household food demand.

Keywords: Demand and Price Analysis; Research Methods/Statistical Methods (search for similar items in EconPapers)
Pages: 28
Date: 2003-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/122113/files/Cornell_Dyson_rb0306.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:cudarb:122113

DOI: 10.22004/ag.econ.122113

Access Statistics for this paper

More papers in Research Bulletins from Cornell University, Department of Applied Economics and Management Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().