Journal ArticleDOI
Singularity and Autoregressive Disturbances in Linear Logit Models
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TLDR
In this article, it is argued that the normality assumption of the error terms is more appropriate in the linear logit model than in a share equation model with additive disturbances, and their implications for model estimation are discussed in that context.Abstract:
The implications of including autoregressive disturbances in linear logit models of demand systems are explored. It is argued that the normality assumption of the error terms is more appropriate in the linear logit model than in a share equation model with additive disturbances (commonly found in the literature). Autoregressive disturbances and their implications for model estimation are discussed in that context. Both theoretical arguments and empirical evidence are presented in favor of the logit specification given the presence of serial correlation.read more
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Mixed mnl models for discrete response
Daniel McFadden,Kenneth Train +1 more
TL;DR: In this article, the adequacy of a mixing specification can be tested simply as an omitted variable test with appropriately definedartificial variables, and a practicalestimation of aarametricmixingfamily can be run by MaximumSimulated Likelihood EstimationorMethod ofSimulatedMoments, andeasilycomputedinstruments are provided that make the latter procedure fairly eAcient.
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The Impact of Policies and Land Characteristics on Potential Groundwater Pollution in Wisconsin
JunJie Wu,Kathleen Segerson +1 more
TL;DR: In this article, the authors present an empirical framework for quantifying the extensive margin effects of commodity programs and chemical use taxes on potential groundwater pollution in Wisconsin, emphasizing the role of the joint distribution of crops and site characteristics in determining policy impacts on groundwater contamination.
Journal ArticleDOI
Dynamic translog and linear logit models: a factor demand analysis of interfuel substitution in US industrial energy demand
Giovanni Urga,Chris F. Walters +1 more
TL;DR: In this article, the translog and the logit were compared with respect to the rates of dynamic adjustment and substitution possibilities, and it was shown that coal and oil are substitutes.
Journal ArticleDOI
Separability, functional form and regulatory policy in models of interfuel substitution
TL;DR: In this article, the authors examined three possible reasons for this problem: including energy materials in petroleum and coal aggregates, mathematical properties of the translog function contribute to concavity violations, and natural gas curtailment policies and environmental regulations are significant factors influencing US industrial fuel demand.
Journal ArticleDOI
The stochastic specification of demand share equations: Restricting budget shares to the unit simplex
TL;DR: In this paper, the additive logistic normal (ALN) distribution is used for the estimation of a system of demand share equations, which is a distribution familiar to statisticians.
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Posted Content
An Almost Ideal Demand System
TL;DR: The Almost Ideal Demand System (AIDS) as mentioned in this paper is a first-order approximation of the Rotterdam and translog models, which has been used to test the homogeneity and symmetry restrictions of demand analysis.
Book
Theory of cost and production functions
TL;DR: In this article, a unified treatment of cost and production functions underlie the economic theory of production is presented, and the duality between cost function and production function is developed by introducing a cost correspondence, showing that these two functions are given in terms of each other by dual minimum problems.
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