Can Supply and demand parameters be recovered from data generated by market institutions?

James C. Cox, Ronald L. Oaxaca

Research output: Contribution to journalArticlepeer-review

5 Scopus citations

Abstract

The relative accuracy of estimators in recovering supply and demand parameters can depend on the market institutions that generate the data. The parameters of known supply and demand functions are estimated with data from laboratory market experiments with human buyers and sellers. Single-equation estimators dominate simultaneous-equations estimators in recovering supply and demand parameters from posted-offer market data. The inaccuracy of simultaneous-equations estimators with posted-offer data can be explained by the implications for error distributions of the inherent properties of this market institution. Simultaneous-equations estimators perform better with closing-price data from double-auction markets.

Original languageEnglish (US)
Pages (from-to)285-297
Number of pages13
JournalJournal of Business and Economic Statistics
Volume17
Issue number3
DOIs
StatePublished - Jul 1999

Keywords

  • Double-auction markets
  • Experimental economics
  • Posted-offer markets
  • Simultaneous-equations estimators
  • Single-equation estimators

ASJC Scopus subject areas

  • Statistics and Probability
  • Social Sciences (miscellaneous)
  • Economics and Econometrics
  • Statistics, Probability and Uncertainty

Fingerprint

Dive into the research topics of 'Can Supply and demand parameters be recovered from data generated by market institutions?'. Together they form a unique fingerprint.

Cite this