On the efficiency gains from imposing symmetry constraints in demand systems

Carl H. Nelson, James K. Binkley

Research output: Contribution to journalArticlepeer-review

Abstract

This paper presents an easy to apply formula which can be used to assess the efficiency gains from imposing symmetry constraints on a system of demand equations. The interrelationship of the correlation between errors and the correlation between variables is shown to have a significant impact on efficiency gains. Standard results on efficiency gains from seemingly unrelated regression are shown to be inapplicable.

Original languageEnglish (US)
Pages (from-to)217-222
Number of pages6
JournalEconomics Letters
Volume22
Issue number2-3
DOIs
StatePublished - 1986

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

Fingerprint Dive into the research topics of 'On the efficiency gains from imposing symmetry constraints in demand systems'. Together they form a unique fingerprint.

Cite this