A Variant on the Arguments for the Invariance of Estimators in a Singular System of Equations

Allocation models such as consumer demand systems typicall imply a degenerate error structure. The usual approach in estimation is to delete one equation, and to appeal to the results of Barten(1969) or Powell(1969) that parameter estimates are invariant to the equation deleted. However such proofs of invariance are not straightforward. This paper demonstrates that such systems are observationally equivalent to structures common in the simultaneous equations literature, for which invariance is obvious, and hence provides a more transparent demonstration of conditions for invariance


Issue Date:
Oct 01 1989
Publication Type:
Working or Discussion Paper
Language:
English
Total Pages:
18
Series Statement:
Working Paper No. 8/89




 Record created 2018-01-23, last modified 2018-01-24

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)