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Combining Cross‐Section and Time‐Series Information on Demand Relationships for Substitute Goods
Author(s) -
Holmes R. A.
Publication year - 1968
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1237871
Subject(s) - pooling , series (stratigraphy) , econometrics , section (typography) , estimation , computer science , variable (mathematics) , economics , quality (philosophy) , cross sectional data , cross section (physics) , mathematical optimization , mathematics , paleontology , mathematical analysis , philosophy , physics , management , epistemology , quantum mechanics , artificial intelligence , biology , operating system
This study deals with the problem of pooling cross‐section and time‐series results in the estimation of demand functions when the appropriate endogenous variable differs in the two analyses. An iterative estimation procedure which incorporates a necessary distinction between quantity and quality elasticities of demand is developed and tested. This procedure addresses the estimation problems arising from differences between the cross‐section and time‐series models and data, and provides a partial test of the model specification.