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Modelling the Demand Behaviour of Spanish Consumers Using Parametric and Non-Parametric Approaches

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  • J A Molina

Abstract

This article models the demand behaviour of consumers using the parametric and non-parametric approaches. To that end, we consider Spanish time-series from 1964 to 1995 relative to the quantities and prices of five aggregated consumption goods, namely Food, Clothing, Energy, Transport and Miscellaneous Goods. With respect to the non-parametric results, we find that there is a stable demand system underlying the personal preferences structure which explains the observed quantities of goods and is equivalent to the existence of a well-behaved utility function. The parametric results show that the homogeneous and symmetric version of the Rotterdam model satisfies the econometric and theoretical requirements, and hence can properly be used for modelling the demand behaviour of Spanish consumers from 1964 to 1995.

Suggested Citation

  • J A Molina, 2002. "Modelling the Demand Behaviour of Spanish Consumers Using Parametric and Non-Parametric Approaches," Studies in Economics and Econometrics, Taylor & Francis Journals, vol. 26(2), pages 19-37, August.
    • Handle: RePEc:taf:rseexx:v:26:y:2002:i:2:p:19-37
    DOI: 10.1080/10800379.2002.12106329
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