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Econometric Estimation of PCAIDS Models

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  • Germán Coloma

Abstract

This paper presents a version of the proportionally calibrated almost ideal demand system (PCAIDS) model, useful for merger simulations, which can be econometrically estimated using price data for two firms in a market. The model is then applied to a database of the Argentine gasoline market, and its results are compared to the ones obtained with other alternative specifications.

Suggested Citation

  • Germán Coloma, 2004. "Econometric Estimation of PCAIDS Models," CEMA Working Papers: Serie Documentos de Trabajo. 276, Universidad del CEMA.
    • Handle: RePEc:cem:doctra:276
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    File URL: https://www.ucema.edu.ar/publicaciones/download/documentos/276.pdf
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    References listed on IDEAS

    as
    1. Roy J. Epstein & Dniel L. Rubinfeld, 2004. "Merger Simulation with Brand-Level Margin: Extending PCAIDS with Nests," Industrial Organization 0401003, University Library of Munich, Germany.
    2. Jerry Hausman & Gregory Leonard & J. Douglas Zona, 1994. "Competitive Analysis with Differentiated Products," Annals of Economics and Statistics, GENES, issue 34, pages 143-157.
    3. repec:adr:anecst:y:1994:i:34:p:06 is not listed on IDEAS
    4. Roy J. Epstein & Daniel L. Rubinfeld, 2002. "Merger Simulation: A Simplified Approach with New Applications," Industrial Organization 0201002, University Library of Munich, Germany.
    5. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    6. Epstein Roy J. & Rubinfeld Daniel L., 2004. "Merger Simulation with Brand-Level Margin Data: Extending PCAIDS with Nests," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-28, March.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Oliver Budzinski & Isabel Ruhmer, 2010. "Merger Simulation In Competition Policy: A Survey," Journal of Competition Law and Economics, Oxford University Press, vol. 6(2), pages 277-319.
    2. Chyong, C K. & Reiner, D & Aggarwal, D., 2021. "Market power and long-term gas contracts: the case of Gazprom in Central and Eastern European Gas Markets," Cambridge Working Papers in Economics 2144, Faculty of Economics, University of Cambridge.
    3. Gregory Swinand & Hugh Hennessy, 2014. "Estimating postal demand elasticities using the PCAIDS method," Chapters, in: Michael A. Crew & Timothy J. J. Brennan (ed.), The Role of the Postal and Delivery Sector in a Digital Age, chapter 5, pages 65-74, Edward Elgar Publishing.
    4. Lundmark, Robert & Wårell, Linda, 2008. "Horizontal mergers in the iron ore industry--An application of PCAIDS," Resources Policy, Elsevier, vol. 33(3), pages 129-141, September.
    5. Gordon, Daniel V., 2018. "Country of origin growth modelling for imported salted & dried (Klippfisk) products to Brazil," Journal of Commodity Markets, Elsevier, vol. 12(C), pages 31-43.

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    More about this item

    Keywords

    PCAIDS; demand estimation; merger simulations; Argentine gasoline market;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels

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