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"Methods of Estimation for Markets in Disequilibrium: A Further Study," (with H. H. Kelejian), Econometrica, 1974.

Paper: pdf file

This paper is concerned with the problem of estimating demand and supply schedules in disequilibrium markets. The results of Fair and Jaffee are expanded in three ways. (1) Their directional method I is modified to yield consistent estimates. (2) A maximum likelihood alternative to their quantitative method is proposed. (3) The price equation is generalized to be a multivariate, stochastic function, and a method is proposed for estimating demand and supply schedules in this case.


This paper is an extension of my paper with D.M. Jaffee, 1972#1. It is one of many papers that followed from the Fair-Jaffee paper.