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Structural estimation based on simulated data

Economics Asked on January 12, 2021

I wrote down a structural demand model, simulated data for exogenous variables (product features and consumer characteristics), and generated data for endogenous variables (observed consumption choices). I then estimate the model with the data using a maximum likelihood estimator. However, the estimates are very different from the true parameters used for simulation. Why does this happen and what should I do?

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