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The testing and estimation of complete demand systems on household budget surveys

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  • Ray, Ranjan

Abstract

A recent demand system (AIDS) is extended to include family size explicitly and, then, estimated on Indian budget data. The estimation, using non-linear FIML, is performed, first, on pure time series and, then, on pooled cross section data. Within and across equation restrictions are imposed and tested. The principal results include:u(a)significant price and family size effects on the budget share of an item,(b)sensitivity of test results on homogeneity and symmetry to (i) rural/urban data, (ii) time series/cross section and (iii) inclusion/omission of family size,(c)considerable difference between pure time series and pooled cross section estimates, and(d)difference between the expenditure responses of the rural and urban consumer.

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  • Ray, Ranjan, 1982. "The testing and estimation of complete demand systems on household budget surveys," European Economic Review, Elsevier, vol. 17(3), pages 349-369.
  • Handle: RePEc:eee:eecrev:v:17:y:1982:i:3:p:349-369 DOI: 10.1016/S0014-2921(82)80069-X
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    References listed on IDEAS

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    Cited by:

    1. Hannan, M.M & Dutta, A. & Kabir, H. & Hannan, M.M, 2010. "Household demand for dairy products in Bangladesh: An Application of AIDS Model," Journal of the Bangladesh Agricultural University, Bangladesh Agricultural University Research System (BAURES), vol. 8.
    2. Harold Alderman, 1988. "Estimates of Consumer Price Response in Pakistan using Market Prices as Data," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 27(2), pages 89-107.
    3. Robin Winkler, 2015. "Feast or Famine: The Welfare Impact of Food Price Controls in Nazi Germany," Economics Series Working Papers Number 136, University of Oxford, Department of Economics.
    4. Robin Winkler, 2015. "Feast or Famine: The Welfare Impact of Food Price Controls in Nazi Germany," Oxford University Economic and Social History Series _136, Economics Group, Nuffield College, University of Oxford.
    5. EHTISHAM AHMAD & STEPHEN LuDLOW & NICHOLAS STERN, 1988. "Demand Response in Pakistan: A Modification of the Linear Expenditure System for 1976," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 27(3), pages 293-308.
    6. Gundlach, Erich, 1993. "Die Dienstleistungsnachfrage als Determinante des wirtschaftlichen Strukturwandels," Open Access Publications from Kiel Institute for the World Economy 763, Kiel Institute for the World Economy (IfW).
    7. Maganga, Assa Mulagha & Phiri, M. Alexander R. & Mapemba, Lawrence D. & Gebremariam, Gebrelibanos G. & Dzanja, Josephy K., 2014. "A Food Demand System Estimation for Rural Malawi: Estimates Using Third Integrated Household Survey Data," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 174853, Agricultural and Applied Economics Association.
    8. Savadogo, Kimseyinga & Brandt, Jon A., 1988. "Household Food Demand in Burkina Faso: Implications for Food Policy," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 2(4), December.
    9. Sánchez, Luis & Reyes, Orlando, 2016. "La demanda de gasolinas, gas licuado de petróleo y electricidad en el Ecuador: elementos para una reforma fiscal ambiental," Documentos de Proyectos 706, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    10. Jensen, Helen & Manrique, Justo, 1993. "Disaggregated welfare effects of agricultural price policies in urban Indonesia," UC3M Working papers. Economics 2902, Universidad Carlos III de Madrid. Departamento de Economía.
    11. Sasaki, Kozo, 1996. "Consumer demand in Japan: An analysis using the Deaton-Muellbauer system," Japan and the World Economy, Elsevier, vol. 8(3), pages 335-351, September.

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