Conduct Parameter Estimation in Homogeneous Goods Markets with Equilibrium Existence and Uniqueness Conditions: The Case of Log-linear Specification

Yuri Matsumura and Suguru Otani

Papers from arXiv.org

Abstract: We propose a constrained generalized method of moments (GMM) estimator with some equilibrium uniqueness conditions for estimating the conduct parameter in a log-linear model with homogeneous goods markets. Monte Carlo simulations demonstrate that merely imposing parameter restrictions leads to not just inaccurate estimations but also some numerical issues, and adding the equilibrium uniqueness conditions resolves them. We also suggest a formulation of the GMM estimation to further avoid the numerical issues.

Date: 2024-07, Revised 2025-11
New Economics Papers: this item is included in nep-dcm, nep-ecm and nep-inv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://arxiv.org/pdf/2407.12422 Latest version (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:arx:papers:2407.12422

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().