I
ideal limit (R1)
The maximum distance a consumer will travel to purchase goods.
See also: central place theory
identification problem (C1)
The ECONOMETRIC problem of discovering from data which equation is being estimated. A major example of this is the problem of separating demand from supply curves when attempting to construct a demand curve from raw data. If, over a period of time, there are shifts in a demand curve, different observations A, B, C and D will be on different demand curves X1 X1-X4 X4 and so a supply curve (line YY) rather than a demand curve has been identified. As this problem arises because the CETERIS PARIBUS conditions do not hold,
only by collecting data on such background variables is it possible to identify a ...
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