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Consumer preferences and demand systems

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Author Info
William Barnett (Department of Economics, The University of Kansas)
Apostolos Serletis (University of Calgary)

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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 di¤erent approaches to empirical demand analysis, such as the di¤erential approach, the locally .exible functional forms approach, the semi-nonparametric approach, and a nonparametric 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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Paper provided by University of Kansas, Department of Economics in its series WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS with number 200801.

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Length: 41 pages
Date of creation: Jan 2008
Date of revision: Jan 2008
Handle: RePEc:kan:wpaper:200801

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Related research
Keywords: representative consumer; Engel curves; rank; flexible functional forms; parametric tests; nonparametric tests; theoretical regularity.;

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Find related papers by JEL classification:
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
E21 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. William Barnett & Apostolos Serletis, 2009. "The Differential Approach to Demand Analysis and the Rotterdam Model," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 200902, University of Kansas, Department of Economics, revised Jan 2009. [Downloadable!]
    Other versions:
  2. Barnett, William A. & Serletis, Apostolos, 2008. "Measuring Consumer Preferences and Estimating Demand Systems," MPRA Paper 12318, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  3. Apostolos Serletis & Guohua Feng, 2008. "Semi-Nonparametric Estimates of Currency Substitution Between the Canadian Dollar and the U.S. Dollar," Working Papers 2008-32, Department of Economics, University of Calgary, revised 27 Oct 2008. [Downloadable!]
  4. William Barnett & W. Erwin Diewert & Arnold Zellner, 2009. "Introduction to Measurement with Theory," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 200906, University of Kansas, Department of Economics, revised Apr 2009. [Downloadable!]
    Other versions:
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