dc.contributor.author | Brasch, Thomas von | |
dc.contributor.author | Raknerud, Arvid | |
dc.date.accessioned | 2021-08-10T11:04:47Z | |
dc.date.available | 2021-08-10T11:04:47Z | |
dc.date.issued | 2021-04 | |
dc.identifier.issn | 1892-753X | |
dc.identifier.uri | https://hdl.handle.net/11250/2767175 | |
dc.description.abstract | In a seminal paper, Feenstra (1994) developed an instrumental variable estimator which is becoming increasingly popular for estimating demand elasticities. Soderbery (2015) extended this estimator and created a routine which was shown to be more robust to data outliers when the number of time periods is small or moderate. In this paper, we extend the Feenstra/Soderbery (F/S) estimator along two important dimensions to obtain a more efficient estimator: we handle the cases where there are no simultaneity problems, i.e. when supply is either elastic or inelastic, and we generalize the current practice of choosing a particular reference variety by creating a pooled estimator across all possible reference varieties. Using a Monte Carlo study, we show that our proposed estimator reduces the RMSE compared to the F/S estimator by between 60 and 90 percent across the whole parameter space. | en_US |
dc.language.iso | eng | en_US |
dc.publisher | Statistisk sentralbyrå | en_US |
dc.relation.ispartofseries | Discussion Paper;No. 951 | |
dc.rights | Navngivelse-Ikkekommersiell 4.0 Internasjonal | * |
dc.rights.uri | http://creativecommons.org/licenses/by-nc/4.0/deed.no | * |
dc.subject | Demand elasticity | en_US |
dc.subject | Panel data | en_US |
dc.subject | Two-stage estimator | en_US |
dc.title | A two-stage pooled panel data estimator of demand elasticities | en_US |
dc.type | Working paper | en_US |
dc.source.pagenumber | 41 | en_US |