Estimation in large and disaggregated demand systems: an estimator for conditionally linear systems

B-Tier
Journal: Journal of Applied Econometrics
Year: 1999
Volume: 14
Issue: 3
Pages: 209-232

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Empirical demand systems that do not impose unreasonable restrictions on preferences are typically non‐linear. We show, however, that all popular systems possess the property of conditional linearity. A computationally attractive iterated linear least squares estimator (ILLE) is proposed for large non‐linear simultaneous equation systems which are conditionally linear in unknown parameters. The estimator is shown to be consistent and its asymptotic efficiency properties are derived. An application is given for a 22‐commodity quadratic demand system using household‐level data from a time series of repeated cross‐sections. Copyright © 1999 John Wiley & Sons, Ltd.

Technical Details

RePEc Handle
repec:wly:japmet:v:14:y:1999:i:3:p:209-232
Journal Field
Econometrics
Author Count
2
Added to Database
2026-01-24