ESTIMATION OF CENSORED LA/AIDS MODEL WITH ENDOGENOUS UNIT VALUES

Diansheng Dong (), Harry Kaiser and Oystein Myrland

No 122119, Research Bulletins from Cornell University, Department of Applied Economics and Management

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.

Keywords: Demand and Price Analysis; Research Methods/Statistical Methods (search for similar items in EconPapers)
Pages: 39
Date: 2003-10
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:cudarb:122119

DOI: 10.22004/ag.econ.122119

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