Censored QUAIDS estimation with quaidsce

Juan Caro, Grace Melo, José Alberto Molina and Juan Salgado
Additional contact information
Juan Caro: University of Luxembourg
Juan Salgado: Instituto Nacional de Salúd Pública, México

No 1045, Boston College Working Papers in Economics from Boston College Department of Economics

Abstract: Censoring, or zero expenditures, in the dependent variables of demand systems can lead to inconsistent parameter and elasticity estimates. Poi (2012) introduced the Stata command quaids to estimate quadratic almost-ideal demand systems, or QUAIDS (Banks, Bundell and Lewbel, 1997), although without the possibility to address censoring. In this paper, we introduce the command quaidsce to consistently estimate the QUAIDS in the presence of zero observations, using the two-step procedure proposed by Shonkwiler and Yen (1999). The new command also allows for estimating expenditure and price elasticities with standard errors, using post-estimation tools.

Keywords: Censoring; Stata; QUAIDS; quaidsce (search for similar items in EconPapers)
JEL-codes: C30 C87 D12 (search for similar items in EconPapers)
Date: 2021-12-12
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Citations: View citations in EconPapers (1)

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