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Consumer preferences and demand systems

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  • Barnett, William A.
  • Serletis, Apostolos

Abstract

This paper is an up-to-date survey of the state-of-the-art in consumer demand modelling. We review and evaluate advances in a number of related areas, including different approaches to empirical demand analysis, such as the differential approach, the locally flexible functional forms approach, the semi-non-parametric approach, and a non-parametric approach. We also address estimation issues, including sampling theoretic and Bayesian estimation methods, and discuss the limitations of the currently common approaches. We also highlight the challenge inherent in achieving economic regularity, for consistency with the assumptions of the underlying neoclassical economic theory, as well as econometric regularity, when variables are nonstationary.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Econometrics.

Volume (Year): 147 (2008)
Issue (Month): 2 (December)
Pages: 210-224

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Handle: RePEc:eee:econom:v:147:y:2008:i:2:p:210-224

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Web page: http://www.elsevier.com/locate/jeconom

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Keywords: Representative consumer Engel curves Rank Flexible functional forms Parametric tests Non-parametric tests Theoretical regularity;

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  1. Survey Paper on Estimating Consumer Demand Systems
    by David Stern in Stochastic Trend on 2010-10-21 09:22:00
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