The Review of Economics and Statistics Vol. 66 No. 4 1984
Estimating the Structural Equations of Implicit Markets and Household Production Functions
Abstract
Whenever marginal prices are nonconstant, as in most hedonic and household production function markets, ordinary least squares estimates of the price elasticities of structural equations will be biased. A two-stage least squares estimation procedure is developed and applied to estimate hedonic (and potentially household production function) demand functions when price gradients are nonlinear.
- DOI
- 10.2307/1935993
- Volume
- 66
- Issue
- 4
- Pages
- 673
- Sources
- openalex crossref