The Econometrics of Disequilibrium

The systematic study of disequilibrium phenomena is still in its infancy. This book makes a significant contribution to knowledge in the area, being an exposition of the econometric techniques for estimating economic parameters in disequilibrium situations - for example when markets do not clear. It is characteristic of the relevant disequilibrium models that they contain unobserved "latent" variables, which places this subject squarely in the area of qualitative dependent variables. This volume clarifies the various approaches and the relationships between them. The emphasis is on formulating econometric models, deriving the appropriate estimating techniques, and providing guidelines for the computation of the estimates. The theoretical treatment is illustrated by reference to empirical application and one entire chapter is devoted to discussing particular empirical models.