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A trigonometric flexible consumer demand system

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  • Toshinobu Matsuda

Abstract

This paper proposes the first ever empirical specification of a trigonometric demand system. The new model is potentially useful because of some attractive features. It is flexible, amenable to exact aggregation over consumers, possessed of trigonometric Engel curves, which can oscillate, and able to have an unusually large regular region. With comparisons between the new model and two other popular models, an illustration is given for Japanese demand for non-durables and services. The new model shows relatively gentle Engel curves with an inflection point on each of them, which seem reasonable, given that aggregate expenditure is used in parameter estimation.

Suggested Citation

  • Toshinobu Matsuda, 2006. "A trigonometric flexible consumer demand system," Canadian Journal of Economics, Canadian Economics Association, vol. 39(1), pages 145-162, February.
    • Handle: RePEc:cje:issued:v:39:y:2006:i:1:p:145-162
    DOI: 10.1111/j.0008-4085.2006.00342.x
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    Cited by:

    1. Zereyesus, Yacob Abrehe & Xia, Tian & Nava, Noé J. & Li, Xianghong & Cardell, Lila, 2025. "International Income and Price Elasticity Estimates: An Update," Technical Bulletins 358604, United States Department of Agriculture, Economic Research Service.
    2. Kamil Dybczak & Peter Tóth & David Voòka, 2014. "Effects of Price Shocks on Consumer Demand: Estimating the QUAIDS Demand System on Czech Household Budget Survey Data," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 64(6), pages 476-500, December.

    More about this item

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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