A Neural Network Demand System
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.
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Boston College Working Papers in Economics
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