TY  - CHAP
AB  - Estimating parameters of constrained optimization models in a consistent way requires a different set of methods than what is available in a typical econometric toolkit. We identify three complications likely to arise in this context, and suggest solutions to those complications: (i) the bi-level programming character, (ii) ill-posedness, and (iii) derivation of estimator properties. The solutions suggested involve a combination of numerical techniques and utilization of out-of-sample information through Bayesian techniques. The proposed framework is also suitable for typical empirical problems arising in trade analysis such as the estimation of trade equilibrium models and data balancing exercises.
VL  - 7
SN  - 978-0-85724-142-9, 978-0-85724-141-2/1574-8715
DO  - 10.1108/S1574-8715(2010)0000007004
UR  - https://doi.org/10.1108/S1574-8715(2010)0000007004
AU  - Jansson Torbjörn
AU  - Heckelei Thomas
ED  - John Gilbert
PY  - 2010
Y1  - 2010/01/01
TI  - Chapter 1 Estimation of Parameters of Constrained Optimization Models
T2  - New Developments in Computable General Equilibrium Analysis for Trade Policy
T3  - Frontiers of Economics and Globalization
PB  - Emerald Group Publishing Limited
SP  - 1
EP  - 26
Y2  - 2024/05/05
ER  -