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Estimation in Large and Disaggregated Demand Systems: An Estimator for Conditionally Linear Systems Author info | Abstract | Publisher info | Download info | Related research | Statistics Blundell, Richard
Robin, Jean Marc
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Empirical demand systems that do not impose unreasonable restrictions on preferences are typically non-linear. We show, however, that all popular systems possess the property of conditional linearity. A computationally attractive iterated linear least squares estimator (ILLE) is proposed for large non-linear simultaneous equation systems which are conditionally linear in unknown parameters. The estimator is shown to be consistent and its asymptotic efficiency properties are derived. An application is given for a 22-commodity quadratic demand system using household-level data from a time series of repeated cross-sections.
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Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics .
Volume (Year): 14 (1999)
Issue (Month): 3 (May-June)
Pages: 209-32
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Handle: RePEc:jae:japmet:v:14:y:1999:i:3:p:209-32Contact details of provider: Web page: http://www.interscience.wiley.com/jpages/0883-7252/
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