Cost Function Estimation with Proportional Errors in Variables

Richard E. JUST; Rulon D. POPE

Article Details

Cost Function Estimation with Proportional Errors in Variables

Authors:

Richard E. JUST | Rulon D. POPE

Publisher:

Econometric Research Association

Main Topics:

Sociology and anthropology | Management

Journal:

International Econometric Review 2012 Vol.4 Issue 2, pp.59-81

Document Type:

Article

Publication Date:

8/2012

Document Language:

Turkish

Document ID (Org No.):

2000717702

Frequency:

Quarterly

eISSN:

1308-8815

pISSN:

1308-8793

Abstract:

 

A model with proportional errors in variables arising naturally in microeconomics is considered. Unlike the classical additive errors case, all OLS parameter estimates exhibit   attenuation bias that does not depend on the limiting distribution of the data. The distribution of OLS estimators is developed. With no intercept, a simple correction of OLS   based on mean predictions is identified that is consistent and asymptotically normal. With an intercept, a readily available additional moment based on sample data identifies the   parameters. In neither case are additional restrictions or use of extra-sample data as instruments required as for common errors-in-variables methods.

Article Details

Cost Function Estimation with Proportional Errors in Variables

Authors: Richard E. JUST | Rulon D. POPE

Publisher: Econometric Research Association

Main Topics: Sociology and anthropology | Management

Journal: International Econometric Review 2012 Vol.4 Issue 2, pp.59-81

Document Type: Article

Publication Date: 8/2012

Document Language: Turkish

Document ID (Org No.): 2000717702

Frequency: Quarterly

eISSN: 1308-8815

pISSN: 1308-8793

Issues

Authors:

Richard E. JUST | Rulon D. POPE

Publisher:

Econometric Research Association

Main Topics:

Sociology and anthropology | Management

Journal:

International Econometric Review 2012 Vol.4 Issue 2, pp.59-81

Document Type:

Article

Publication Date:

8/2012

Document Language:

Turkish

Document ID (Org No.):

2000717702

Frequency:

Quarterly

eISSN:

1308-8815

pISSN:

1308-8793