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Estimation Of A U.S. Dairy Sector Model By Maximum Simulated Likelihood

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  • Arias, Carlos
  • Cox, Thomas L.

Abstract

This paper estimates a multivariate tobit system of monthly wholesale dairy prices where 4 prices are lower censored by the dairy price support program. Using Maximum Simulated Likelihood (MSL) we test/correct for the effects of simulation noise and present two tests for estimating multivariate versus the singel tobit equations.

Suggested Citation

  • Arias, Carlos & Cox, Thomas L., 1998. "Estimation Of A U.S. Dairy Sector Model By Maximum Simulated Likelihood," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20804, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea98:20804
    DOI: 10.22004/ag.econ.20804
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    1. Borsch-Supan, Axel & Hajivassiliou, Vassilis A., 1993. "Smooth unbiased multivariate probability simulators for maximum likelihood estimation of limited dependent variable models," Journal of Econometrics, Elsevier, vol. 58(3), pages 347-368, August.
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    4. Cox, Thomas L. & Sumner, Daniel A., 1996. "Analysis Of Recent Options For Changes In U.S. Dairy Policy," Proceedings of the 2nd Agricultural and Food Policy Systems Information Workshop, 1996: Understanding Canada\United States Dairy Disputes 16967, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
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    10. Jorge Cornick & Thomas L. Cox & Brian W. Gould, 1994. "Fluid Milk Purchases: A Multivariate Tobit Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(1), pages 74-82.
    11. Lee, Lung-Fei & Pitt, Mark M, 1986. "Microeconometric Demand Systems with Binding Nonnegativity Constraints: The Dual Approach," Econometrica, Econometric Society, vol. 54(5), pages 1237-1242, September.
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    14. Dobson, William D., 1998. "What Will Happen After the USDA's Dairy Price Support Program Ends?," Marketing and Policy Briefing Papers 12697, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
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    Cited by:

    1. Vincenzo Atella & Carlos Arias & Federico Perali & Raffaella Castagnini, 2003. "Estimation of the Sharing Rule Between Adults and Children and Related Equivalence Scales Within a Collective Consumption Framework," CEIS Research Paper 28, Tor Vergata University, CEIS.
    2. Burca Kizilirmak & Emel Memis, 2019. "The Unequal Burden of Income Poverty on Time Use in South Africa," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 5(2), pages 31-51, December.
    3. Havet, Nathalie & Bayart, Caroline & Bonnel, Patrick, 2021. "Why do Gender Differences in Daily Mobility Behaviours persist among workers?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 145(C), pages 34-48.
    4. David Aristei & Michela Vecchi & Francesco Venturini, 2016. "University and inter-firm R&D collaborations: propensity and intensity of cooperation in Europe," The Journal of Technology Transfer, Springer, vol. 41(4), pages 841-871, August.
    5. Qian, Hang, 2009. "Estimating SUR Tobit Model while errors are gaussian scale mixtures: with an application to high frequency financial data," MPRA Paper 31509, University Library of Munich, Germany.

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