Estimation of Random Coe ¢ cient Demand Models : Challenges , Di ¢ culties and Warnings

@inproceedings{Knittel2008EstimationOR,
  title={Estimation of Random Coe ¢ cient Demand Models : Challenges , Di ¢ culties and Warnings},
  author={Christopher R. Knittel and Konstantinos Metaxoglou},
  year={2008}
}
Empirical exercises in economics frequently involve estimation of highly nonlinear models. The criterion function may not be globally concave or convex and exhibit many local extrema. Choosing among these local extrema is non-trivial for a variety of reasons. In this paper, we analyze the sensitivity of parameter estimates, and most importantly of economic… CONTINUE READING