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Staff Paper No. 417 - Abstract

Estimation of a U.S. Dairy Sector Model by Maximum Simulated Likelihood

Carlos Arias
Thomas L. Cox [tlcox@wisc.edu]

Staff Paper No. 417, February 1999, 26p.

Abstract

This paper estimates a multivariate Tobit system of monthly wholesale dairy prices where 4 prices are lower censored by the dairy price support program. Using Maximum Simulated Likelihood (MSL) we test/correct for the effects of simulation noise and discuss the relevance of estimating multivariate versus the single Tobit equations.
Last updated on Thu, Jun 2, 2005 11:03am