The R Package markets: Estimation Methods for Markets in Equilibrium and Disequilibrium

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 dis...

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Main Author: Pantelis Karapanagiotis
Format: Article
Language:English
Published: Foundation for Open Access Statistics 2024-02-01
Series:Journal of Statistical Software
Online Access:https://www.jstatsoft.org/index.php/jss/article/view/4770
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author Pantelis Karapanagiotis
author_facet Pantelis Karapanagiotis
author_sort Pantelis Karapanagiotis
collection DOAJ
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.
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spelling doaj-art-ca6b192a92cc4c3fab54da8a54da7e5c2024-12-29T00:12:47ZengFoundation for Open Access StatisticsJournal of Statistical Software1548-76602024-02-01108110.18637/jss.v108.i02The R Package markets: Estimation Methods for Markets in Equilibrium and DisequilibriumPantelis Karapanagiotis0EBS Business School 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. https://www.jstatsoft.org/index.php/jss/article/view/4770
spellingShingle Pantelis Karapanagiotis
The R Package markets: Estimation Methods for Markets in Equilibrium and Disequilibrium
Journal of Statistical Software
title The R Package markets: Estimation Methods for Markets in Equilibrium and Disequilibrium
title_full The R Package markets: Estimation Methods for Markets in Equilibrium and Disequilibrium
title_fullStr The R Package markets: Estimation Methods for Markets in Equilibrium and Disequilibrium
title_full_unstemmed The R Package markets: Estimation Methods for Markets in Equilibrium and Disequilibrium
title_short The R Package markets: Estimation Methods for Markets in Equilibrium and Disequilibrium
title_sort r package markets estimation methods for markets in equilibrium and disequilibrium
url https://www.jstatsoft.org/index.php/jss/article/view/4770
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