The matrix approach to evaluating demand equations
As there is a plethora of demand models, which one should be used to estimate income and price elasticities? The paper sheds light on this important practical problem by developing a matrix approach to simulating (MAS) demand equations to analyse their performance under idealized circumstances. Artificial data on the dependent variable are generated by one model, and these are then used for the estimation of another model. As an illustrative application, using four popular models, a 4 × 4 matrix is generated which gives all pair-wise comparisons. The performance of the models is then evaluated on the basis of the quality of the income and own-price elasticity estimates.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 33 (2001)
Issue (Month): 8 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEC20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEC20|
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.:
- Madden, David, 1996. "Marginal Tax Reform and the Specification of Consumer Demand Systems," Oxford Economic Papers, Oxford University Press, vol. 48(4), pages 556-567, October.
- Ahmad, Ehtisham & Stern, Nicholas, 1984. "The theory of reform and indian indirect taxes," Journal of Public Economics, Elsevier, vol. 25(3), pages 259-298, December.
- Selvanathan, Saroja, 1987. "A Monte Carlo test of preference independence," Economics Letters, Elsevier, vol. 25(3), pages 259-261.
- Decoster, Andre & Schokkaert, Erik, 1990. "Tax reform results with different demand systems," Journal of Public Economics, Elsevier, vol. 41(3), pages 277-296, April.
- Theil, Henri & Shonkwiler, J. S. & Taylor, Timothy G., 1985. "A Monte Carlo test of Slutsky symmetry," Economics Letters, Elsevier, vol. 19(4), pages 331-332.
- Neves, Pedro Duarte, 1994. "A class of differential demand systems," Economics Letters, Elsevier, vol. 44(1-2), pages 83-86.
- Keller, Wouter J., 1984. "Some simple but flexible differential consumer demand systems," Economics Letters, Elsevier, vol. 16(1-2), pages 77-82.
- Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1975. "Transcendental Logarithmic Utility Functions," American Economic Review, American Economic Association, vol. 65(3), pages 367-383, June.
- Selvanathan, E. Antony, 1985.
"An even simpler differential demand system,"
Elsevier, vol. 19(4), pages 343-347.
- E.A. Selvanathan, 1985. "An Even Simpler Differential Demand System," Economics Discussion / Working Papers 85-08, The University of Western Australia, Department of Economics.
- Diewert, W E, 1971. "An Application of the Shephard Duality Theorem: A Generalized Leontief Production Function," Journal of Political Economy, University of Chicago Press, vol. 79(3), pages 481-507, May-June.
- William A. Barnett, 1979. "Theoretical Foundations for the Rotterdam Model," Review of Economic Studies, Oxford University Press, vol. 46(1), pages 109-130.
- de Boer, P. M. C. & Harkema, R., 1986. "Maximum likelihood estimation of sum-constrained linear models with insufficient observations," Economics Letters, Elsevier, vol. 20(4), pages 325-329.
- Byron, R. P., 1984. "On the flexibility of the Rotterdam model," European Economic Review, Elsevier, vol. 24(3), pages 273-283, April.
- Clements, Kenneth W & Selvanathan, Saroja, 1994. "Understanding Consumption Patterns," Empirical Economics, Springer, vol. 19(1), pages 69-110.
- K.W. Clements & S. Selvanathan, 1992. "Understanding Consumption Patterns," Economics Discussion / Working Papers 92-13, The University of Western Australia, Department of Economics.
- Howe, Howard & Pollak, Robert A & Wales, Terence J, 1979. "Theory and Time Series Estimation of the Quadratic Expenditure System," Econometrica, Econometric Society, vol. 47(5), pages 1231-1247, September.
- Terence J. Wales, 1971. "A Generalized Linear Expenditure Model of the Demand for Non-durable Goods in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 4(4), pages 471-484, November.
- André DECOSTER & Erik SHCOKKAERT, 1989. "Equity and efficiency of a reform of Belgian indirect taxes," Discussion Papers (REL - Recherches Economiques de Louvain) 1989023, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Taylor, Timothy G. & Shonkwiler, J. S. & Theil, Henri, 1986. "Monte Carlo and bootstrap testing of demand homogeneity," Economics Letters, Elsevier, vol. 20(1), pages 55-57.
- Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:33:y:2001:i:8:p:957-967. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.