6
votes
Accepted
Is this an an endogeneity/simultaneity problem?
Let us consider Situation 1.
Let us assume that $\rho$ is observed. If it does not work when $\rho$ is observed, there is no reason why it (using a proxy of $\rho$ as instrument) should work when $\...
5
votes
Are simultaneous equation models out of fashion? Why?
I think this is already answered in the paper itself and in addition I think this is due to the way how they define 'simultaneous equations' topics.
First as authors of that paper opine:
This ...
4
votes
Accepted
Is it possible to get a demand function as function of income and utility from this log linear indirect utility?
First of all, I do not really understand how
$$v=-c\frac{p^{(-β+1)}}{(-\beta+1)}+\frac{y^{(-\gamma+1)}}{(-\gamma+1)},$$
can be an indirect utility function since it is a function of $c$ and the ...
3
votes
Accepted
How to estimate $\gamma$ in the following model?
If $u$ is normally distributed conditional on $x$ and $Q$, then you could estimate through probit the second equation. Because $Q$ depends on $e$, and $e$ is correlated with $u$, this assumption ...
1
vote
Equilibrium with substitute goods
Let's start by writing down the profit functions:
$$
\pi_1 = p_1 q_1 - c_1 q_1 = (p_1 - c_1) q_1 = (p_1 - c_1)(a_1 + b_{11} p_1+b_{12} p_2)
$$
and similarlily:
$$
\pi_2 = (p_2 - c_2)(a_2 + b_{21} p_1 +...
Only top scored, non community-wiki answers of a minimum length are eligible
Related Tags
simultaneous-equation-model × 7econometrics × 3
regression × 2
demand × 2
macroeconomics × 1
utility × 1
labor-economics × 1
definition × 1
competitive-equilibrium × 1
soft-question × 1
history × 1
oligopoly × 1
endogeneity × 1
identification × 1
teaching × 1
demand-system-estimation × 1
heterogeneity × 1
contracts × 1