Please use this identifier to cite or link to this item: http://arks.princeton.edu/ark:/88435/dsp016q182k145
 Title: A Comment on Consumer Demand Systems with Binding Non-Negativity Constraints Authors: Ransom, Michael Keywords: constraintslimited dependent variablesdemand system Issue Date: 1-Jun-1985 Citation: Journal of Econometrics, Vol. 34, No. 3, March 1987 Series/Report no.: Working Papers (Princeton University. Industrial Relations Section) ; 192 Abstract: Wales and Woodland (1983) have proposed an econometric model to deal with non-negativity constraints in systems of demand equations. This paper points out the relationship between the Wales—Woodland model and the "simultaneous Tobit" model of Amemiya (1974). This relationship is important because Amemiya has proposed a simple estimation procedure that can be utilized for some cases of the Wales—Woodland model. The issue of internal consistency for models of this type is discussed. I point out that internal consistency for the Wales—Woodland model is equivalent to the second order condition for systems without quantity constraints. URI: http://arks.princeton.edu/ark:/88435/dsp016q182k145 Related resource: http://www.sciencedirect.com/science/journal/03044076 Appears in Collections: IRS Working Papers

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