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Updating Parameter Estimates: A Least Squares Approach with an Application to the Inventory of Beef Cows

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  • Freebairn, John W.
  • Rausser, Gordon C.

Abstract

A least squares estimator for utilizing forthcoming information to update or revise estimates of the parameters of an econometric model is derived, some properties of the updated estimates are discussed, and an illustrative application is provided. The forthcoming information includes new sample observations and a priori probabilistic information about changes, if any, occurring in the parameters of the estimated model over time. Recursive formulae for sequential updating of the parameter estimates are derived. The procedure is used to update estimates of the parameters of an equation describing annual net changes in the inventory of Australian beef cows.

Suggested Citation

  • Freebairn, John W. & Rausser, Gordon C., 1974. "Updating Parameter Estimates: A Least Squares Approach with an Application to the Inventory of Beef Cows," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 42(02), pages 1-17, June.
    • Handle: RePEc:ags:remaae:9635
    DOI: 10.22004/ag.econ.9635
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    File URL: https://ageconsearch.umn.edu/record/9635/files/42020083.pdf
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    References listed on IDEAS

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    1. Goldfeld, Stephen M. & Quandt, Richard E., 1973. "A Markov model for switching regressions," Journal of Econometrics, Elsevier, vol. 1(1), pages 3-15, March.
    2. Cooley, Thomas F & Prescott, Edward C, 1973. "Tests of an Adaptive Regression Model," The Review of Economics and Statistics, MIT Press, vol. 55(2), pages 248-256, May.
    3. Davidson, Bruce Robinson, 1973. "The Relationship Between the Price of Wool and the Relative Profitability of Sheep and Cattle Grazing in Australia and its Possible Effect on the Future Supplies of Wool and Beef," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 41(01), pages 1-17, March.
    4. Cooley, Thomas F & Prescott, Edward C, 1973. "An Adaptive Regression Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(2), pages 364-371, June.
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    Cited by:

    1. Anderson, Jock R., 1979. "Impacts of Climatic Variability in Australian Agriculture: A Review," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 47(03), pages 1-31, December.

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    Keywords

    Livestock Production/Industries;

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