A Note on the Estimation of Non-Symmetric Dynamic Factor Demand Models

Dilip B. Madan and Ingmar Prucha, Journal of Econometrics 42(2), 275-283, October .


In a recent article Epstein and Yatchew (1985) introduced a simplified procedure for the estimation of symmetric dynamic factor demand models. This procedure hinges on a reparametrization of the model, results in closed form analytic expressions for the firm’s factor demand, and can be carried out by standard econometric packages. The purpose of this note is to extend the procedure to the case of nonsymmetric dynamic factor demand models. 

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