IDEAS home Printed from https://ideas.repec.org/p/ags/uguewp/34139.html
   My bibliography  Save this paper

Demand System Choice Based On Testing The Engel Curve Specification

Author

Listed:
  • Soregaroli, Claudio
  • Huff, Karen
  • Meilke, Karl D.

Abstract

It is common to use a demand systems approach in estimating the key parameters from household consumption data. In conducting these studies the researcher is faced with selecting a functional form. In turn, each functional form implies a particular shape for the Engel curves. This analysis highlights the importance of testing the shape of Engel curves, especially if the researcher is interested in elasticity estimates well away from the sample mean. Using consumption data for selected households in Italy it is shown that many popular functional forms are rejected by the data.

Suggested Citation

  • Soregaroli, Claudio & Huff, Karen & Meilke, Karl D., 2002. "Demand System Choice Based On Testing The Engel Curve Specification," Working Papers 34139, University of Guelph, Department of Food, Agricultural and Resource Economics.
  • Handle: RePEc:ags:uguewp:34139
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/34139
    Download Restriction: no

    References listed on IDEAS

    as
    1. 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.
    2. Deaton, Angus, 1987. "Estimation of own- and cross-price elasticities from household survey data," Journal of Econometrics, Elsevier, vol. 36(1-2), pages 7-30.
    3. J. Scott Shonkwiler & Steven T. Yen, 1999. "Two-Step Estimation of a Censored System of Equations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 972-982.
    4. Hausman, J. A. & Newey, W. K. & Powell, J. L., 1995. "Nonlinear errors in variables Estimation of some Engel curves," Journal of Econometrics, Elsevier, vol. 65(1), pages 205-233, January.
    5. Aasness, Jorgen & Rodseth, Asbjorn, 1983. "Engel curves and systems of demand functions," European Economic Review, Elsevier, vol. 20(1-3), pages 95-121, January.
    6. Delgado, Miguel A & Miles, Daniel, 1997. "Household Characteristics and Consumption Behaviour: A Nonparametric Approach," Empirical Economics, Springer, vol. 22(3), pages 409-429.
    7. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
    8. Giles, David E A & Hampton, Peter, 1985. "An Engel Curve Analysis of Household Expenditure in New Zealand," The Economic Record, The Economic Society of Australia, vol. 61(172), pages 450-462, March.
    9. De Witte, M. A. C. & Cramer, J. S., 1986. "Functional form of engel curves for foodstuffs," European Economic Review, Elsevier, vol. 30(4), pages 909-913, August.
    10. Lee, Lung-Fei & Pitt, Mark M, 1986. "Microeconometric Demand Systems with Binding Nonnegativity Constraints: The Dual Approach," Econometrica, Econometric Society, vol. 54(5), pages 1237-1242, September.
    11. Moschini, GianCarlo & Rizzi, P. L., 1997. "La Struttura Dei Consumi Delle Famiglie in Italia," Staff General Research Papers Archive 1192, Iowa State University, Department of Economics.
    12. 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.
    13. Richard Blundell & Alan Duncan, 1998. "Kernel Regression in Empirical Microeconomics," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 62-87.
    14. 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 348-359, June.
    15. Lewbel, Arthur, 1987. "Characterizing Some Gorman Engel Curves," Econometrica, Econometric Society, vol. 55(6), pages 1451-1459, November.
    16. Keen, Michael, 1986. "Zero Expenditures and the Estimation of Engel Curves," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(3), pages 277-286, July.
    17. Laitinen, Kenneth & Theil, Henri & Raparla, Tejaswi, 1983. "A generalization of working's model," Economics Letters, Elsevier, vol. 13(1), pages 97-100.
    18. Bewley, R A, 1982. "On the Functional Form of Engel Curves: The Australian Household Expenditure Survey, 1975-76," The Economic Record, The Economic Society of Australia, vol. 58(160), pages 82-91, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Paula Carvalho Pereda & Denisard Cneio de Oliveira Alves, 2008. "Demand for Nutrients in Brazil," Anais do XXXVI Encontro Nacional de Economia [Proceedings of the 36th Brazilian Economics Meeting] 200807211136590, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].

    More about this item

    Keywords

    Demand and Price Analysis;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:uguewp:34139. 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: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/dagueca.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.