The Informational Fit and Maximum Likelihood in a Pooled Cross-Country Demand System with Autocorrelation
We fit the Florida Model with an AR(1) error structure to pooled cross-country International Comparison Project (ICP) data of Seale, Walker, and Kim and estimate the model with the minimum information (MI) estimator. Point estimates obtained by MI are similar in value to those obtained by Seale, Walker, and Kim with maximum likelihood (ML). Two similar simulations but with different sample sizes are conducted to compare the relative efficiencies of MI and ML with known and unknown (MLU) covariances. In the larger sample, the MLU is more efficient in terms of root-mean-squared errors (RMSEs) than the MI. Noteworthy, in the small sample, the MI is more efficient in terms of RMSEs than MLU, even though MLU explicitly accounts for AR(1), whereas the MI does not. These results correspond to earlier findings of Theil for time-series and cross-sectional data.
Volume (Year): 35 (2003)
Issue (Month): ()
|Contact details of provider:|| Web page: http://www.saea.org/jaae/jaae.htm|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Seale, James L., Jr. & Regmi, Anita & Bernstein, Jason, 2003.
"International Evidence On Food Consumption Patterns,"
33580, United States Department of Agriculture, Economic Research Service.
- Seale, James & Regmi, Anita & Bernstein, Jason, 2003. "International Evidence on Food Consumption Patterns," Technical Bulletins 184321, United States Department of Agriculture, Economic Research Service.
- Theil, Henri & Finke, Renate & Flood, Lennart R., 1984. "Minimum information estimation of allocation models," Economics Letters, Elsevier, vol. 15(3-4), pages 251-256.
- Finke, Renate & Theil, Henri, 1984. "An extended version of minimum information estimation of allocation models," Economics Letters, Elsevier, vol. 15(3-4), pages 229-233.
- Seale, James Jr. & Walker, Wayne E. & Kim, In-Moo, 1991. "The demand for energy : Cross-country evidence using the Florida model," Energy Economics, Elsevier, vol. 13(1), pages 33-40, January.
When requesting a correction, please mention this item's handle: RePEc:ags:joaaec:43294. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.