Full Citation

Title: A Bayesian Simultaneous Demand and Supply Model for Aggregate Data in a Differentiated Product Market

Citation Type: Working Paper

Publication Year: 2010

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Abstract: In this paper, we propose a Bayesian simultaneous demand andsupply model for aggregate data in a differentiated product market. The proposed method treats price endogeneity and consumer heterogeneity as well as requires only aggregate data. In the Bayesian estimation, we use an MCMC algorithm including the data augmentation, Gibbs sampler and Metropolis-Hastings algorithm. Our likelihood for the demand and supply model is directly derived from the endogenous sales volume and price unlike a past similar framework. To show validity of our proposed method, we perform an analysis of simulated data, and apply our method to data from the U.S. automobile market.

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Authors: Yonetani, Yutaka; Kanazawa, Yuichiro; Turnbull, Stephen John; Myojo, Satoshi

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Publication Number: 1258

Institution: University of Tsukuba

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Publisher Location: Tsukuba, Ibaraki, Japan

Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure

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