Semiparametric Estimation of Consumer Demand Systems with Micro Data
Author | : Abdoul G. Sam |
Publisher | : |
Total Pages | : 0 |
Release | : 2020 |
ISBN-10 | : OCLC:1375475655 |
ISBN-13 | : |
Rating | : 4/5 (55 Downloads) |
Download or read book Semiparametric Estimation of Consumer Demand Systems with Micro Data written by Abdoul G. Sam and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Maximum likelihood and two-step estimators of censored demand systems yield biased and inconsistent parameter estimates when the assumed joint distribution of disturbances is incorrect. This paper proposes a semiparametric estimator that retains the computational advantage of the two-step approach but is immune to distributional misspecification. The key difference between the proposed estimator and the two-step estimator is that the parameters of the binary censoring equations are estimated using a distribution-free single-index model. We implement the proposed estimator using household-level data obtained from the Hainan province in China. specification test lends support to our approach.