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Demographic Variables in Demand Systems: The Case for Generality

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Author Info

  • Ray, R.

Abstract

This paper provides evidence in favour of greater generality in the demographic demand literature. We propose two demographic demand procedures. One extends the German model by allowing non-additive interaction between 'overheads' and 'Barten scaling.' The other extends 'Price Scaling,' by allowing the equivalence scale to vary with utility, and offers a test of 'Equivalence Scale Exactness' (ESE). The rejection of ESE is robust to the assumed demand functional forms (RNLPS, QAIDS), to items chosen, and the estimation method (MLE, GMM). The results show that published cell averages yield well determined estimates of the demographic generalisation parameters.

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Bibliographic Info

Paper provided by Tasmania - Department of Economics in its series Papers with number 1995-08.

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Length: 27 pages
Date of creation: 1995
Date of revision:
Handle: RePEc:fth:tasman:1995-08

Contact details of provider:
Postal: UNIVERSITY OF TASMANIA, DEPARTMENT OF ECONOMICS, HOBART TASMANIA 7001 AUSTRALIA.
Phone: +61 3 6226 7672
Fax: +61 3 6226 7587
Web page: http://www.utas.edu.au/economics-finance/
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Related research

Keywords: DEMOGRAPHY; DEMAND;

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Cited by:
  1. Meenakshi, J.V. & Ray, R., 1996. "Regional Differences in India's Food Expenditure Pattern: A Complete Demand Systems Approach," Papers 1996-06, Tasmania - Department of Economics.
  2. Lyssiotou, Panayiota, 2012. "Demographics and demand: Evaluation of alternative functional forms," Economics Letters, Elsevier, vol. 117(3), pages 627-631.
  3. Laura Blow, 2003. "Demographics in demand systems," IFS Working Papers W03/18, Institute for Fiscal Studies.

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