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Exploring Alternatives For Estimating Systems Of Equations With Multiple Censored Variables: Farm Output Supply And Input Demand

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  • Arias, Carlos
  • Perali, Carlo Federico

Abstract

This paper explores two alternatives for estimating systems of equations with multiple censored variables: Maximum Simulated Likelihood and a two-step technique that seems to be well suited for large samples. The empirical part of the paper estimates a system of cost, cost shares and revenue shares equations of Italian farms using both approaches.

Suggested Citation

  • Arias, Carlos & Perali, Carlo Federico, 1999. "Exploring Alternatives For Estimating Systems Of Equations With Multiple Censored Variables: Farm Output Supply And Input Demand," 1999 Annual meeting, August 8-11, Nashville, TN 21591, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea99:21591
    DOI: 10.22004/ag.econ.21591
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    References listed on IDEAS

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    1. Borsch-Supan, Axel & Hajivassiliou, Vassilis A., 1993. "Smooth unbiased multivariate probability simulators for maximum likelihood estimation of limited dependent variable models," Journal of Econometrics, Elsevier, vol. 58(3), pages 347-368, August.
    2. Huffman, Wallace E., 1988. "An Econometric Methodology for Multiple-Output Agricultural Technology: An Application of Endogenous Switching Models," Staff General Research Papers Archive 11003, Iowa State University, Department of Economics.
    3. Phaneuf, Daniel J., 1999. "A Dual Approach to Modeling Corner Solutions in Recreation Demand," Journal of Environmental Economics and Management, Elsevier, vol. 37(1), pages 85-105, January.
    4. Lee, Lung-Fei & Pitt, Mark M, 1986. "Microeconometric Demand Systems with Binding Nonnegativity Constraints: The Dual Approach," Econometrica, Econometric Society, vol. 54(5), pages 1237-1242, September.
    5. Stern, Steven, 1992. "A Method for Smoothing Simulated Moments of Discrete Probabilities in Multinomial Probit Models," Econometrica, Econometric Society, vol. 60(4), pages 943-952, July.
    6. Antonella Caiumi & Federico Perali, 1997. "Female Labor Force Participation: A Comparison between Urban and Rural Families," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 595-601.
    7. Arthur Lewbel, 1985. "A Unified Approach to Incorporating Demographic or Other Effects into Demand Systems," Review of Economic Studies, Oxford University Press, vol. 52(1), pages 1-18.
    8. Hajivassiliou, Vassilis & McFadden, Daniel & Ruud, Paul, 1996. "Simulation of multivariate normal rectangle probabilities and their derivatives theoretical and computational results," Journal of Econometrics, Elsevier, vol. 72(1-2), pages 85-134.
    9. Blundell, Richard & Pashardes, Panos & Weber, Guglielmo, 1993. "What Do We Learn About Consumer Demand Patterns from Micro Data?," American Economic Review, American Economic Association, vol. 83(3), pages 570-597, June.
    10. Browning, Martin & Meghir, Costas, 1991. "The Effects of Male and Female Labor Supply on Commodity Demands," Econometrica, Econometric Society, vol. 59(4), pages 925-951, July.
    11. Lee, Lung-Fei & Pitt, Mark M., 1984. "Microeconometric Models of Consumer and Producer Demand with Limited Dependent Variables," Bulletins 7495, University of Minnesota, Economic Development Center.
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    Cited by:

    1. Sckokai, Paolo, 2001. "The Common Agricultural Policy In Econometric Models," Working Papers 14800, National Institute of Agricultural Economics, Italy - INEA, Osservatorio Sulle Politiche Agricole dell'UE.

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