Holt, Matthew T. and Goodwin, Barry K. (2009): The Almost Ideal and Translog Demand Systems. Forthcoming in: Contributions to Economic Analysis, Quantifying Consumer Preferences , Vol. 288, (2009)
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This chapter reviews the specification and application of the Deaton and Muellbauer (1980) Almost Ideal Demand System (AIDS) and the Christensen, Jorgensen, and Lau (1975) tranlog (TL) demand system. In so doing we examine various refinements to these models, including ways of incorporating demographic effects, methods by which curvature conditions can be imposed, and issues associated with incorporating structural change and seasonal effects. We also review methods for adjusting for autocorrelation in the model's residuals. A set of empirical examples for the AIDS and a the log TL version of the translog based on historical meat price and consumption data for the United States are also presented.
|Item Type:||MPRA Paper|
|Original Title:||The Almost Ideal and Translog Demand Systems|
|English Title:||The Almost Ideal and Translog Demand Systems|
|Keywords:||Almost ideal demand system, Autocorrelation, Curvature, Meat Demand, Translog|
|Subjects:||C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C32 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes ; State Space Models
D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q11 - Aggregate Supply and Demand Analysis ; Prices
|Depositing User:||Matthew T. Holt|
|Date Deposited:||09. May 2009 07:23|
|Last Modified:||11. Feb 2013 22:29|
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