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Consumer preferences and demand systems

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  • William Barnett

    (Department of Economics, The University of Kansas)

  • Apostolos Serletis

    (University of Calgary)

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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Bibliographic Info

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

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  1. Survey Paper on Estimating Consumer Demand Systems
    by David Stern in Stochastic Trend on 2010-10-21 09:22:00
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