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Theoretical restrictions on the parameters of the indirect addilog system revisited

Author

Listed:
  • de Boer, P.M.C.
  • Brocker, J.
  • Jensen, B.S.
  • van Daal, J.

Abstract

The correct parameter restrictions- less restrictive than commonly thought-of the indirect addilog system (IAS) are derived. Under correct restrictions, the IAS is superior to the linear expenditure system in computable general equilibrium models with data scarcity.

Suggested Citation

  • de Boer, P.M.C. & Brocker, J. & Jensen, B.S. & van Daal, J., 2006. "Theoretical restrictions on the parameters of the indirect addilog system revisited," Econometric Institute Research Papers EI 2006-11, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    • Handle: RePEc:ems:eureir:7757
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    References listed on IDEAS

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    1. Hanoch, Giora, 1975. "Production and Demand Models with Direct or Indirect Implicit Additivity," Econometrica, Econometric Society, vol. 43(3), pages 395-419, May.
    2. Somermeyer, W. H. & Langhout, A., 1972. "Shapes of Engel curves and demand curves: Implications of the expenditure allocation model, applied to Dutch data," European Economic Review, Elsevier, vol. 3(3), pages 351-386, November.
    3. Akin, John S & Stewart, John F, 1979. "Theoretical Restrictions on the Parameters of Indirect Addilog Demand Equations," Econometrica, Econometric Society, vol. 47(3), pages 779-780, May.
    4. Somermeyer, W. H., 1974. "Further analysis of cross-country comparison of consumer expenditure patterns," European Economic Review, Elsevier, vol. 5(3), pages 303-306.
    5. de Boer, P.M.C. & Missaglia, M., 2005. "Introducing the indirect addilog system in a computable general equilibrium model: a case study for Palestine," Econometric Institute Research Papers EI 2005-25, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    6. Gamaletsos, Theodore, 1974. "Further analysis of cross-country comparison of consumer expenditure patterns," European Economic Review, Elsevier, vol. 5(3), pages 307-307.
    7. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762.
    8. Murty, K N, 1982. "Theoretical Restrictions on the Parameters of Indirect Addilog Demand Equations-A Comment," Econometrica, Econometric Society, vol. 50(1), pages 225-227, January.
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    Cited by:

    1. Tommaso Gabrieli & Sayantan Ghosal, 2013. "Non-existence of competitive equilibria with dynamically inconsistent preferences," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 52(1), pages 299-313, January.

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    More about this item

    Keywords

    CGE-modelling; indirect addilog system; parameter restriction;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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