Estimation of Demand Systems Based on Elasticities of Substitution
AbstractThis paper develops a model for demand-system estimations, whose coefficients are own-price Marshallian elasticities and elasticities of substitution between goods. The model satisfies the homogeneity, symmetry and, eventually, adding-up restrictions implied by consumer theory. It is primarily useful for the estimation of the demands of several goods of the same industry or group of products. The characteristics of the model are compared to other existing alternatives (logarithmic, translog, AIDS and QUAIDS demand systems). The model is finally applied to estimate the demands for several carbonated soft drinks in Argentina, and its results are presented together with the ones obtained with the other estimation methods.
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Bibliographic InfoArticle provided by Review of Applied Economics in its journal Review of Applied Economics.
Volume (Year): 5 (2009)
Issue (Month): 1-2 ()
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Web page: http://www.lincoln.ac.nz/story11874.html
demand systems; elasticity of substitution; carbonated soft drinks; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Marketing; C30; D12; L66;
Other versions of this item:
- Germán Coloma, 2006. "Estimation of demand systems based on elasticities of substitution," CEMA Working Papers: Serie Documentos de Trabajo. 322, Universidad del CEMA.
- C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
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