Bayesian estimation of the exact affine Stone index demand system: Replicating the Lewbel and Pendakur (2009) results (replication data)

DOI

This paper proposes a Bayesian approach to perform inference in the exact affine Stone index (EASI) demand system that was proposed by Lewbel and Pendakur (2009), while taking into account nonlinearity and endogeneity. A Bayesian approach enables us to easily handle censored data, test and impose inequality restrictions (strict cost monotonicity) and concavity of the cost function, and perform inference of nonlinear functions of the parameter estimates as by-product of the posterior chains. We compare our proposal with Lewbel and Pendakur (2009)'s results, based on iterative linear three-stage least squares (3SLS). Although we found no statistically significant differences in point estimates between these two approaches, it seems that ignoring censoring overestimates precision.

Identifier
DOI https://doi.org/10.15456/jae.2022327.0717145971
Metadata Access https://www.da-ra.de/oaip/oai?verb=GetRecord&metadataPrefix=oai_dc&identifier=oai:oai.da-ra.de:775212
Provenance
Creator Ramírez-Hassan, Andrés
Publisher ZBW - Leibniz Informationszentrum Wirtschaft
Publication Year 2021
Rights Creative Commons Attribution 4.0 (CC-BY); Download
OpenAccess true
Contact ZBW - Leibniz Informationszentrum Wirtschaft
Representation
Language English
Resource Type Collection
Discipline Economics