A Varying Coefficient Approach to Global Flexibility in Demand Analysis: A Semiparametric Approximation |
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| Authors: | Camilo Sarmiento |
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| Institution: | Camilo Sarmiento is currently associate research scientist at the Pacific Institute for Research and Evaluation, Calverton Office Park, MD. |
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| Abstract: | To reduce dimensionality issues, this article derives a globally flexible demand system that can be estimated non-parametrically with a specially devised temporal kernel. Statistical and economic results from a meat demand application underscores the usefulness of a temporal kernel in globally approximating an integrable demand system. |
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| Keywords: | demand system global flexibility integrability kernel regression meat demand time varying coefficient |
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