Random Weather Shocks and Biased Estimates of Excess Demand

In an excess demand system where random weather shocks enter multiplicatively rather than additively, estimates of the underlying parameters will be in-efficient und~r the "small country" assumptioi:i and biased in the "large country" case. A Monte Carlo simulation demonstrates that the magnitude of the bias is potentially very large.


Issue Date:
Aug 05 1990
Publication Type:
Conference Paper/ Presentation
Record Identifier:
http://ageconsearch.umn.edu/record/271051
Language:
English
Total Pages:
19




 Record created 2018-04-09, last modified 2018-04-09

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