A SAMPLE SELECTION APPROACH TO CENSORED DEMAND SYSTEMS

A censored demand system estimator is proposed by extending the sample selection model of Heckman. Censoring is governed by a selection mechanism which avoids the restricitve Tobit parameterization. Results of application to household consumption of beverages suggest the estimator produces slightly different elasticity estimates from the Tobit estimator. Demands for beverages are nearly unitary elastic, and net substitution is an obvious pattern.


Issue Date:
2004
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/20082
Total Pages:
17
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-10-21

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