Estimation of a Heterogeneous Demand Function with Berkson Errors

• 成果类型: Article
• 署名作者: Blundell, Richard; Horowitz, Joel; Parey, Matthias
• 署名单位: University of London; University College London; University of London; London School Economics & Political Science; Northwestern University; University of Surrey
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/rest_a_01018
• 发表日期: 2022-09
• 页码: 877-889
• 关键词: nonparametric-estimation; gasoline demand; restrictions

摘要

Berkson errors are commonplace in empirical microeconomics. In consumer demand, this form of measurement error occurs when the price an individual pays is measured by the (weighted) average price paid by individuals in a group (e.g., a county) rather than the true transaction price. We show the importance of Berkson errors for demand estimation with nonseparable unobserved heterogeneity. We develop a consistent estimator using external information on the true price distribution. Examining gasoline demand in the United States, we document substantial within-market price variability. Accounting for Berkson errors is quantitatively important. Imposing the Slutsky shape constraint reduces sensitivity to Berkson errors.