Microeconometric Models of Consumer and Producer Demand with Limited Dependent Variables

Lung-Fei Lee and Mark Pitt ()

No 7495, Bulletins from University of Minnesota, Economic Development Center

Abstract: The specification and estimation of models of consumer and producer demand with kink points are considered. The presence of kink points divides the demand or production schedule into different regimes. Our approach utilizes the concept of virtual prices. The virtual prices transform binding quantities into nonbinding ones and provide a rigorous justification for structural change in the observed demand functions across regimes. The comparison of virtual prices with market prices determines regime occurences. An application to energy demand in Indonesian manufacturing firms based on the translog cost function is provided.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Pages: 39
Date: 1984
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://ageconsearch.umn.edu/record/7495/files/edc84-04.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:umedbu:7495

DOI: 10.22004/ag.econ.7495

Access Statistics for this paper

More papers in Bulletins from University of Minnesota, Economic Development Center Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().