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Estimation of a US dairy sector model by maximum simulated likelihood

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  • Carlos Arias
  • Thomas Cox

Abstract

This paper estimates a multivariate Tobit system of monthly wholesale dairy prices where four prices are lower censored by the dairy price support programme. Using Maximum Simulated Likelihood (MSL) the effects of simulation noise are tested/corrected for and the relevance of estimating multivariate versus the single Tobit equations discussed.

Suggested Citation

  • Carlos Arias & Thomas Cox, 2001. "Estimation of a US dairy sector model by maximum simulated likelihood," Applied Economics, Taylor & Francis Journals, vol. 33(9), pages 1201-1211.
  • Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1201-1211
    DOI: 10.1080/00036840010005797
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    3. Qian, Hang, 2009. "Estimating SUR Tobit Model while errors are gaussian scale mixtures: with an application to high frequency financial data," MPRA Paper 31509, University Library of Munich, Germany.
    4. Burca Kizilirmak & Emel Memis, 2019. "The Unequal Burden of Income Poverty on Time Use in South Africa," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 5(2), pages 31-51, December.
    5. David Aristei & Michela Vecchi & Francesco Venturini, 2016. "University and inter-firm R&D collaborations: propensity and intensity of cooperation in Europe," The Journal of Technology Transfer, Springer, vol. 41(4), pages 841-871, August.

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