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

  • Ray, Ranjan

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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Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 17 (1982)
Issue (Month): 3 ()
Pages: 349-369

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Handle: RePEc:eee:eecrev:v:17:y:1982:i:3:p:349-369
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  18. Pollak, Robert A & Wales, Terence J, 1978. "Estimation of Complete Demand Systems from Household Budget Data: The Linear and Quadratic Expenditure Systems," American Economic Review, American Economic Association, vol. 68(3), pages 348-59, June.
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