### Abstract

Estimators are often defined as the maximizing values of some objective function. This note introduces an algorithm for the computation of such estimators for the parameters of a system of equations where some of the variables are implicitly defined by an auxiliary set of equations. Systems of equations of this kind have been considered in the recent factor demand literature as well as in other areas. The algorithm is a gradient procedure. To keep the computational burden manageable it calculates the gradient from analytic expressions rather than by numerical differentiation.

Original language | English (US) |
---|---|

Pages (from-to) | 141-145 |

Number of pages | 5 |

Journal | Economics Letters |

Volume | 26 |

Issue number | 2 |

DOIs | |

State | Published - 1988 |

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### ASJC Scopus subject areas

- Economics and Econometrics
- Finance

### Cite this

*Economics Letters*,

*26*(2), 141-145. https://doi.org/10.1016/0165-1765(88)90030-4

**On the computation of estimators in systems with implicity defined variables.** / Prucha, Ingmar R.; Nadiri, M.

Research output: Contribution to journal › Article

*Economics Letters*, vol. 26, no. 2, pp. 141-145. https://doi.org/10.1016/0165-1765(88)90030-4

}

TY - JOUR

T1 - On the computation of estimators in systems with implicity defined variables

AU - Prucha, Ingmar R.

AU - Nadiri, M

PY - 1988

Y1 - 1988

N2 - Estimators are often defined as the maximizing values of some objective function. This note introduces an algorithm for the computation of such estimators for the parameters of a system of equations where some of the variables are implicitly defined by an auxiliary set of equations. Systems of equations of this kind have been considered in the recent factor demand literature as well as in other areas. The algorithm is a gradient procedure. To keep the computational burden manageable it calculates the gradient from analytic expressions rather than by numerical differentiation.

AB - Estimators are often defined as the maximizing values of some objective function. This note introduces an algorithm for the computation of such estimators for the parameters of a system of equations where some of the variables are implicitly defined by an auxiliary set of equations. Systems of equations of this kind have been considered in the recent factor demand literature as well as in other areas. The algorithm is a gradient procedure. To keep the computational burden manageable it calculates the gradient from analytic expressions rather than by numerical differentiation.

UR - http://www.scopus.com/inward/record.url?scp=38249031741&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=38249031741&partnerID=8YFLogxK

U2 - 10.1016/0165-1765(88)90030-4

DO - 10.1016/0165-1765(88)90030-4

M3 - Article

AN - SCOPUS:38249031741

VL - 26

SP - 141

EP - 145

JO - Economics Letters

JF - Economics Letters

SN - 0165-1765

IS - 2

ER -