The R Package markets: Estimation Methods for Markets in Equilibrium and Disequilibrium
Dublin Core
Title
The R Package markets: Estimation Methods for Markets in Equilibrium and Disequilibrium
Subject
disequilibrium, marginal effects, market clearing, maximum likelihood, short side
rule, shortages
rule, shortages
Description
Market models constitute a significant cornerstone of empirical applications in business, industrial organization, and policymaking macroeconomics. The econometric literature proposes various estimation methods for markets in equilibrium, which entail a
market-clearing structural condition, and disequilibrium, which are described based on a
structural short-side rule. Nonetheless, maximum likelihood estimations of such models
are computationally demanding, and software providing simple, out-of-the-box methods
for estimating them is scarce. Therefore, applications rely on project-specific implementations for estimating these models, which hinders research reproducibility and result
comparability. This article presents the R package markets, which provides a common
interface with generic functionality simplifying the estimation of models for markets in
equilibrium and disequilibrium. The package specializes in estimating demanded, supplied, and aggregated market quantities and absolute, normalized, and relative market
shortages. Its functionality is exemplified via an empirical application using a classic
dataset of United States credit for housing starts. Moreover, the article details the scope
and design of the implementation and provides statistical measurements of the computational performance of its estimation functionality gathered via large-scale benchmarking
simulations. The markets package is free software distributed under the Expat license as
part of the R software ecosystem. It comprises a set of estimation and analysis tools that
are not directly available from either alternative R packages or other statistical software
projects.
market-clearing structural condition, and disequilibrium, which are described based on a
structural short-side rule. Nonetheless, maximum likelihood estimations of such models
are computationally demanding, and software providing simple, out-of-the-box methods
for estimating them is scarce. Therefore, applications rely on project-specific implementations for estimating these models, which hinders research reproducibility and result
comparability. This article presents the R package markets, which provides a common
interface with generic functionality simplifying the estimation of models for markets in
equilibrium and disequilibrium. The package specializes in estimating demanded, supplied, and aggregated market quantities and absolute, normalized, and relative market
shortages. Its functionality is exemplified via an empirical application using a classic
dataset of United States credit for housing starts. Moreover, the article details the scope
and design of the implementation and provides statistical measurements of the computational performance of its estimation functionality gathered via large-scale benchmarking
simulations. The markets package is free software distributed under the Expat license as
part of the R software ecosystem. It comprises a set of estimation and analysis tools that
are not directly available from either alternative R packages or other statistical software
projects.
Creator
Pantelis Karapanagiotis
Source
https://www.jstatsoft.org/article/view/v108i02
Publisher
EBS Business School
Date
March 2024
Contributor
Fajar bagus W
Format
PDF
Language
English
Type
Text
Files
Collection
Citation
Pantelis Karapanagiotis, “The R Package markets: Estimation Methods for Markets in Equilibrium and Disequilibrium,” Repository Horizon University Indonesia, accessed April 7, 2025, https://repository.horizon.ac.id/items/show/8315.