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Endogenous Switching Systems: Issues, Options, and Application to the U.S. Dairy Sector


  • Cornick, Jorge
  • Cox, Thomas L.


This research explores the theoretical and applied issues associated with endogenous switching systems where market prices are bounded by policy instruments such as price supports Options for estimation of model parameters and their associated standard errors are identifdied and explored Application to the US dairy sector illustrates the research tradeoffs between conceptual rigor and empirical tracrability that characterize these models Results suggest that failure to explicitly address the endgenous switching context compromises the estimation results

Suggested Citation

  • Cornick, Jorge & Cox, Thomas L., 4. "Endogenous Switching Systems: Issues, Options, and Application to the U.S. Dairy Sector," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 4.
  • Handle: RePEc:ags:uersja:140093

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