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The testing and estimation of complete demand systems on household budget surveys

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  • Ray, Ranjan

Abstract

A recent demand system (AIDS) is extended to include family size explicitly and, then, estimated on Indian budget data. The estimation, using non-linear FIML, is performed, first, on pure time series and, then, on pooled cross section data. Within and across equation restrictions are imposed and tested. The principal results include:u(a)significant price and family size effects on the budget share of an item,(b)sensitivity of test results on homogeneity and symmetry to (i) rural/urban data, (ii) time series/cross section and (iii) inclusion/omission of family size,(c)considerable difference between pure time series and pooled cross section estimates, and(d)difference between the expenditure responses of the rural and urban consumer.

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  • Ray, Ranjan, 1982. "The testing and estimation of complete demand systems on household budget surveys," European Economic Review, Elsevier, vol. 17(3), pages 349-369.
    • Handle: RePEc:eee:eecrev:v:17:y:1982:i:3:p:349-369
    DOI: 10.1016/S0014-2921(82)80069-X
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    Cited by:

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    2. Hannan, M.M & Dutta, A. & Kabir, H. & Hannan, M.M, 2010. "Household demand for dairy products in Bangladesh: An Application of AIDS Model," Journal of the Bangladesh Agricultural University, Bangladesh Agricultural University Research System (BAURES), vol. 8.
    3. Harold Alderman, 1988. "Estimates of Consumer Price Response in Pakistan using Market Prices as Data," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 27(2), pages 89-107.
    4. Jensen, Helen & Manrique, Justo, 1993. "Disaggregated welfare effects of agricultural price policies in urban Indonesia," UC3M Working papers. Economics 2902, Universidad Carlos III de Madrid. Departamento de Economía.
    5. Fujioka Soichiro & Fukushige Mototsugu, 2019. "The Future of Demand for Food Away from Home and Prepared Food: Cohort and Age Effects in Japan," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 17(1), pages 1-17, May.
    6. Khurram SHAHZAD* & Muhammad Nadeem SARWAR**, 2018. "Analysis of Food Demand Patterns of Sindh Province, Pakistan," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 28(1), pages 147-168.
    7. Schnepf, Randall D. & Senauer, Benjamin, 1989. "Estimation Of An Agricultural Household Model For Southern Minnesota Farms," Staff Papers 14219, University of Minnesota, Department of Applied Economics.
    8. Sánchez, Luis & Reyes, Orlando, 2016. "La demanda de gasolinas, gas licuado de petróleo y electricidad en el Ecuador: elementos para una reforma fiscal ambiental," Documentos de Proyectos 40629, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    9. Ahmad, Ehtishaw & Leung, H-M & Stern, Nicholas, 1984. "Demand Response And The Reform Of Indirect Taxes In Pakistan," Discussion Papers 272825, University of Warwick - Department of Economics.
    10. Gould, Brian W. & Cox, Thomas L. & Perali, Carlo Federico, 1990. "The Demand For Fluid Milk Products In The U.S.: A Demand Systems Approach," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(1), pages 1-12, July.
    11. Robin Winkler, 2015. "Feast or Famine: The Welfare Impact of Food Price Controls in Nazi Germany," Oxford Economic and Social History Working Papers _136, University of Oxford, Department of Economics.
    12. Brandt, Jon & Wilkinson, Ann, 1989. "Incorporating Demographic Information in an Almost Ideal Demand System," 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana 270664, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Falconi, Cesar & Senauer, Benjamin, 1991. "Aggregation Over Consumers And The Estimation Of A Demand System For U.S. Food," Staff Papers 14021, University of Minnesota, Department of Applied Economics.
    14. Savadogo, Kimseyinga & Brandt, Jon A., 1987. "Household Food Demand In A Developing Country: Estimation Of An Extended Almost Ideal Demand System Approach," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 269959, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Robin Winkler, 2015. "Feast or Famine: The Welfare Impact of Food Price Controls in Nazi Germany," Economics Series Working Papers Number 136, University of Oxford, Department of Economics.
    16. Brandt, Jon & Wilkinson, Ann, 1989. "Incorporating Demographic Information in an Almost Ideal Demand System," Working Papers 256738, University of Missouri Columbia, Department of Agricultural Economics.
    17. Cao, Jing & Ho, Mun S. & Hu, Wenhao & Jorgenson, Dale, 2020. "Estimating flexible consumption functions for urban and rural households in China," China Economic Review, Elsevier, vol. 61(C).
    18. EHTISHAM AHMAD & STEPHEN LuDLOW & NICHOLAS STERN, 1988. "Demand Response in Pakistan: A Modification of the Linear Expenditure System for 1976," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 27(3), pages 293-308.
    19. Mehrani , Taha & Ghasemimand , Fatemeh & Salem , Ali Asghar, 2019. "The Effect of Socioeconomic Variables on Provincial Bread Demand Using QAIDS Model," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 14(4), pages 525-554, October.
    20. Gould, Brian W. & Cox, Thomas L. & Perali, Frederico, 1989. "Determinants of the Demand for Food Fats and Oils: The Role of Demographic Variables and Government Donations," Staff Papers 200486, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    21. Gundlach, Erich, 1993. "Die Dienstleistungsnachfrage als Determinante des wirtschaftlichen Strukturwandels," Open Access Publications from Kiel Institute for the World Economy 763, Kiel Institute for the World Economy (IfW Kiel).
    22. Awudu Abdulai, 2002. "Household Demand for Food in Switzerland. A Quadratic Almost Ideal Demand System," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 138(I), pages 1-18, March.
    23. Sasaki, Kozo, 1996. "Consumer demand in Japan: An analysis using the Deaton-Muellbauer system," Japan and the World Economy, Elsevier, vol. 8(3), pages 335-351, September.
    24. Peng Su & Xiaochun Jiang & Chengbo Yang & Ting Wang & Xing Feng, 2019. "Insufficient Consumption Demand of Chinese Urban Residents: An Explanation of the Consumption Structure Effect from Income Distribution Change," Sustainability, MDPI, vol. 11(4), pages 1-22, February.
    25. Maganga, Assa Mulagha & Phiri, M. Alexander R. & Mapemba, Lawrence D. & Gebremariam, Gebrelibanos G. & Dzanja, Josephy K., 2014. "A Food Demand System Estimation for Rural Malawi: Estimates Using Third Integrated Household Survey Data," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 174853, Agricultural and Applied Economics Association.

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