In this paper we derive a joint continuous/censored demand system suitable for the analysis of commodity demand relationships using panel data. Unobserved heterogeneity is controlled for using a correlated random effects specification and a Generalized Method of Moments framework used to...

A Monte Carlo experiment comparing translog cost and production systems indicates that the cost systems' biased estimates of returns to scale and input substitution elasticity's result from an error in variables problem and a disturbance with non-zero mean. Guidelines for when the cost or...