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Re: st: QUAIDS question


From   Jorge Eduardo Pérez Pérez <[email protected]>
To   "[email protected]" <[email protected]>
Subject   Re: st: QUAIDS question
Date   Tue, 1 Nov 2011 11:56:21 -0400

- Yes, you can normalize the prices.
- Yes, it is appropriate to add demand shifters. See:
http://ideas.repec.org/a/ecm/emetrp/v49y1981i6p1533-51.html.In the
vocabulary of this paper, if you include them linearly in the share
equations, you're doing linear demographic translating. The original
QAIDS paper by Banks, Blundell and Lewbel does this.
- Yes, you can use the delta method. See the help for -nlcom-.

Regards,
_______________________
Jorge Eduardo Pérez Pérez




On Tue, Nov 1, 2011 at 11:14 AM, Derya Karaci <[email protected]> wrote:
> Hi,
>
> I have a few questions about the estimation of the QUAIDS model (the program by Brian Poi). They may sound trivial but any help will be greatly appreciated!
>
> - I was wondering if one needs to normalize prices to estimate the elasticites. I am using a cross-sectional survey, so I can not compute a price index over time but I can normalize using the regional variation.
> - Is it possible to incorporate demand shifters in this model? I included two dummy variables and household size under the nlsur command but is it appropriate?
> - Is there a way to recover the standard errors of the elasticities?
>
> Many thanks in advance!
>
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