Hello statalist users
I am estimating a demand system for LA-AIDS model on 13 food groups but so far am faced with a challenge in estimating the price equation for the composite food groups where the dependent variable is multinomial (a unit value) using OLS in order to assess the demand related price effect. How can I go on estimating the prices (p1 to p13) and expenditure shares (w1 to w13) since dividing expenditure by quantity will generate constant price that undermines disparities in prices cross a cross sectional dataset am using.
I read a paper that used price equation estimation of this form but i can not figure out to estimate the prices. This equation is of a form
V = hhdsize + percapita_montlhly_expenditure + Education_ level _hhd + Urban _residence + region
Where categorical variables are Urban(rural, urban), region (west, East, south, north).
could any one know about how to proceed from this point in order to obtain the parameters .
Your response is highly appreciated
I am estimating a demand system for LA-AIDS model on 13 food groups but so far am faced with a challenge in estimating the price equation for the composite food groups where the dependent variable is multinomial (a unit value) using OLS in order to assess the demand related price effect. How can I go on estimating the prices (p1 to p13) and expenditure shares (w1 to w13) since dividing expenditure by quantity will generate constant price that undermines disparities in prices cross a cross sectional dataset am using.
I read a paper that used price equation estimation of this form but i can not figure out to estimate the prices. This equation is of a form
V = hhdsize + percapita_montlhly_expenditure + Education_ level _hhd + Urban _residence + region
Where categorical variables are Urban(rural, urban), region (west, East, south, north).
could any one know about how to proceed from this point in order to obtain the parameters .
Your response is highly appreciated
