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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Published in:Economic Inquiry Vol. 44; no. 2; pp. 374 - 385
Main Authors: Epple, Dennis, McCallum, Bennett T.
Format: Article
Published: Wiley-Blackwell April 2006
Subjects:
Online Access:View this record in EBSCOhost
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        atl: Simultaneous Equation Econometrics: The Missing Example.
      aug:
        au:
          Epple, Dennis
          McCallum, Bennett T.
      su:
        Broiler chickens
        Supply & demand
        Econometrics
        Textbooks
        Simultaneous equations
      sug:
        subj:
          Broiler chickens
          Supply & demand
          Econometrics
          Textbooks
          Simultaneous equations
      ab: 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.
      pubtype: Academic Journal
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    language: English
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