Simultaneous Equation Econometrics: The Missing Example.

For introductory presentation of issues involving simultaneous equation systems, a natural vehicle consists of supply and demand relationships for a single good. One would expect to find in econometrics textbooks a supply-demand example featuring actual data in which structural estimation methods yi...

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Detalles Bibliográficos
Publicado en:Economic Inquiry Vol. 44; no. 2; pp. 374 - 385
Autores principales: Epple, Dennis, McCallum, Bennett T.
Formato: Artículo
Publicado: Wiley-Blackwell April 2006
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Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario:For introductory presentation of issues involving simultaneous equation systems, a natural vehicle consists of supply and demand relationships for a single good. One would expect to find in econometrics textbooks a supply-demand example featuring actual data in which structural estimation methods yield more satisfactory results than does ordinary least squares. But a search of 26 existing textbooks finds no example with actual data in which all crucial parameter estimates are of the proper sign and are statistically significant. The present article accordingly develops a simple but satisfying example, for broiler chickens, based on U.S. annual data from 1960 to 1999. (JEL C30) Reprinted by permission of the publisher.