A Regular Demand System with Commodity-Specific Demographic Effects
AbstractRegular consumer demand systems almost invariably employ specifications that involve common functional forms in all equations. When applications involve crosssectional data it is often the case that demographic effects are important. However it is plausible that demographic effects are commodity-specific. In this case, there may be a loss of efficiency if a common functional form across commodities is imposed artificially by entering redundant explanators in demand equations for which specific demographic influences are unwarranted. This paper explores an approach to specifying a complete system of demand equations which is fully regular but which nevertheless allows for commodity-specific variation in the functional form of the demand equations.
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Bibliographic InfoPaper provided by University of Tasmania, School of Economics and Finance in its series Working Papers with number 818.
Length: 23 pages
Date of creation: 07 Mar 2007
Date of revision:
Publication status: Published by University of Tasmania, School of Economics & Finance -Thesis 2006
Consumer Economics: Theory; Consumer Economics: Empirical Analysis; Demographic Economics;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-11-03 (All new papers)
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.:
- Dickens, Richard & Fry, Vanessa & Pashardes, Panos, 1993. "Non-linearities and Equivalence Scales," Economic Journal, Royal Economic Society, vol. 103(417), pages 359-68, March.
- Blacklow, Paul & Nicholas, Aaron & Ray, Ranjan, 2008.
"Demographic demand systems with application to equivalence scales estimation and inequality analysis: the Australian evidence,"
9289, University of Tasmania, School of Economics and Finance, revised 01 Dec 2008.
- Paul Blacklow & Aaron Nicholas & Ranjan Ray, 2010. "Demographic Demand Systems With Application To Equivalence Scales Estimation And Inequality Analysis: The Australian Evidence," Australian Economic Papers, Wiley Blackwell, vol. 49(3), pages 161-179, 09.
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