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Estimating Demand with Varied Levels of Aggregation

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Author Info
Grose, S.
McLaren, K.

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Abstract

The response of consumer demand to prices, income, and other characteristics is important for a range of policy issues. Naturally, the level of detail for which consumer behaviour can be estimated depends on the level of disaggregation of the available data. However, it is often the case that the available data is differently aggregated in different time periods, with the information available in later time periods usually being more detailed. The applied researcher is thus faced with choosing between detail, in which case the more highly aggregated data is ignored; or duration, in which case the data must be aggregated up to the "lowest common denominator". This paper develops a specification/estimation technique that exploits the entire information content of a variably-aggregated data set.

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File URL: http://www.buseco.monash.edu.au/depts/ebs/pubs/wpapers/2000/wp1-00.pdf
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Publisher Info
Paper provided by Monash University, Department of Econometrics and Business Statistics in its series Monash Econometrics and Business Statistics Working Papers with number 1/2000.

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Length: 29 pages
Date of creation: Feb 2000
Date of revision:
Handle: RePEc:msh:ebswps:2000-1

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Related research
Keywords: Singular demand systems; Linear expenditure system; Almost ideal demand system; Missing data.;

Find related papers by JEL classification:
C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions
C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
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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References listed on IDEAS
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. Fry, Jane M. & Fry, Tim R. L. & McLaren, Keith R., 1996. "The stochastic specification of demand share equations: Restricting budget shares to the unit simplex," Journal of Econometrics, Elsevier, vol. 73(2), pages 377-385, August. [Downloadable!] (restricted)
  2. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June. [Downloadable!] (restricted)
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