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Estimation of Demand Functions Using Cross‐Sectional Household Data: The Problem Revisited
Author(s) -
Dong Diansheng,
Shonkwiler J.S.,
Capps Oral
Publication year - 1998
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 - 10.2307/1244549
Subject(s) - estimation , econometrics , work (physics) , cross sectional data , economics , value (mathematics) , unit (ring theory) , cross sectional study , statistics , mathematics , engineering , mathematics education , management , mechanical engineering
A procedure that corrects for selectivity bias is proposed to estimate demand functions using cross‐sectional data under the assumption that prices vary across households. This procedure, which extends the work by Cox and Wohlgenant, includes a two‐equation system of expenditure and unit value functions. This model is applied to household expenditures for beef steaks and roasts.