Arbeitspapier

Engel elasticities, pseudo-maximum likelihood estimation and bootstrapped standard errors. A case study

Estimation of standard errors of Engel elasticities within the framework of a linear structural model formulated on two-wave panel data is considered. The complete demand system is characterized by measurement errors in total expenditure and by latent preference variation. The estimation of the parameters as well as the standard errors of the estimates is based on the assumption that the variables are normally distributed. Considering a concrete case it is demonstrated that normality does not hold as a maintained assumption. In the light of this standard errors are estimated by means of bootstrapping. However, one obtains rather similar estimates of the standard errors of the Engel elasticities no matter whether one sticks to classical normal inference or perform non-parametric bootstrapping.

Language
Englisch

Bibliographic citation
Series: Discussion Papers ; No. 532

Classification
Wirtschaft
Estimation: General
Semiparametric and Nonparametric Methods: General
Statistical Simulation Methods: General
Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models
Consumer Economics: Empirical Analysis
Subject
Engel elasticities
standard errors
classical normal theory
bootstrapping

Event
Geistige Schöpfung
(who)
Skjerpen, Terje
Event
Veröffentlichung
(who)
Statistics Norway, Research Department
(where)
Oslo
(when)
2008

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Skjerpen, Terje
  • Statistics Norway, Research Department

Time of origin

  • 2008

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