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Combining Aggregate and Plant-Level Data to Estimate a Discrete-Choice Demand Model
Brazilian Review of Econometrics
View Archive Info| Field | Value | |
| Title |
Combining Aggregate and Plant-Level Data to Estimate a Discrete-Choice Demand Model
Combining Aggregate and Plant-Level Data to Estimate a Discrete-Choice Demand Model |
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| Creator |
DeSouza, Sergio Aquino
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| Description |
This paper builds on the methodology developed by Katayma, Lu and Tybout (2003), who use a nested logit demand model to estimate demand parameters from plant-level data that usually report only revenue and cost figures. I demonstrate how to extend their framework by including the extra information provided by commonly available data on aggregate physical output. Using data from the Colombian beer industry from 1977 to 1990, the model, estimated through Bayesian Monte Carlo Methods, shows a sizeable precision gain in the parameter estimates once the aggregate variable is included.
This paper builds on the methodology developed by Katayma, Lu and Tybout (2003), who use a nested logit demand model to estimate demand parameters from plant-level data that usually report only revenue and cost figures. I demonstrate how to extend their framework by including the extra information provided by commonly available data on aggregate physical output. Using data from the Colombian beer industry from 1977 to 1990, the model, estimated through Bayesian Monte Carlo Methods, shows a sizeable precision gain in the parameter estimates once the aggregate variable is included. |
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| Publisher |
Sociedade Brasileira de Econometria
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| Date |
2006-11-01
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion |
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| Format |
application/pdf
application/pdf |
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| Identifier |
http://bibliotecadigital.fgv.br/ojs/index.php/bre/article/view/1577
10.12660/bre.v26n22006.1577 |
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| Source |
Brazilian Review of Econometrics; Vol. 26 No. 2 (2006); 213-233
Brazilian Review of Econometrics; v. 26 n. 2 (2006); 213-233 1980-2447 |
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| Language |
eng
por |
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| Relation |
http://bibliotecadigital.fgv.br/ojs/index.php/bre/article/view/1577/1024
http://bibliotecadigital.fgv.br/ojs/index.php/bre/article/view/1577/1025 |
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