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AIDS and separability: a non sequitur

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Author Info

  • Lee, Jonq-Ying
  • Brown, Mark G.
  • Seale, James L., Jr.

Abstract

The almost ideal demand system (AIDS) is commonly used to study demand for agricultural commodities and groups of commodities. Increasingly, separability has been utilized in conjunction with the AIDS to estimate conditional demand systems as well as to improve upon precision of parameter estimates. The paper shows that separability conditions are inconsistent with use of the AIDS and that tests of separability with the AIDS are problematic.

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File URL: http://purl.umn.edu/52879
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Bibliographic Info

Paper provided by Florida Department of Citrus in its series Research Papers 2005 and Before with number 52879.

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Date of creation: 1992
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Handle: RePEc:ags:fdcr05:52879

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Web page: http://www.floridajuice.com/industry_market.php

Related research

Keywords: AIDS; separability; Demand and Price Analysis;

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