Estimates of Armington parameters for a landlocked economy
AbstractOne of the most debated issues in the Computable General Equilibrium (CGE) literature concerns the validity of the key behavioral parameters used in the calibration process. CGE modelers seldom estimate those parameters, preferring to borrow from the handful of estimates available in the literature. The lack of data is often cited as a reason for this type of modus operandi (technique). Estimating key parameters is very crucial since CGE results are quite sensitive to parameter specification. This paper proposes a new and robust econometric technique, the Generalized Maximum Entropy (GME), to estimate Armington elasticities for selected commodities. All the parameters estimated are intended for use in a Lesotho CGE model.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 31459.
Date of creation: 09 Aug 2005
Date of revision: 10 Aug 2008
CGE; Maximum Entropy (GME); Armington; Africa; Lesotho;
Find related papers by JEL classification:
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
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