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A Neural Network Demand System

Author

Listed:
  • Julien Boelaert

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

We introduce a new type of demand system using a feedforward artificial neural network. The neural network demand system is a flexible system that requires few hypotheses, has no roots in consumer theory but may be used to test it. We use the system to estimate demand elasticities on micro data of household consumption in Canada between 2004 and 2008, and compare the results to those of the quadratic almost ideal demand system.

Suggested Citation

  • Julien Boelaert, 2013. "A Neural Network Demand System," Post-Print halshs-00917810, HAL.
    • Handle: RePEc:hal:journl:halshs-00917810
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00917810
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