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When are Supply and Demand Determined Recursively Rather than Simultaneously? Another look at the Fulton Fish Market Data.

Abstract:

When a supply and demand model is recursive, with errors uncorrelated across the two equations, ordinary least squares (OLS) is the recommended estimation procedure. Supply to a daily fish market is determined by the previous night’s catch, so this would appear to be a good example of a recursive market. Despite this, data from the Fulton fish market are treated in the literature, without explanation, as coming from a simultaneous-equations market. We provide the missing explanation: inventor...

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Publisher:
Department of Economics (University of Oxford)
Series:
Discussion paper series
Publication date:
2006-01-01
Language:
English
UUID:
uuid:c8eed960-3172-45f8-93db-e4dc8a58997a
Local pid:
ora:1336
Deposit date:
2011-08-16

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