A Bayesian Analysis of HOGLEX Demand Systems Using Unit Records for Major Asean Economies: Thailand and the Philippines
The HOGLEX demand system (Tran Van Hoa [10, 111) is integrable and completely general in the sense that it encompasses all other well-known demand systems in the literature on consumer behavior (Laitinen et al. [71). The studies to data have been based on conventional OLS or MLE methods and panel aggregate data. The paper elaborates on important subsets of the HOGLEX demand system and, using household expenditure unit records from two major ASEAN countries (i.e., Thailand and the Philippines), estimated by the Bayesian method of these subsets for a number of socio-demographic cohorts. We also estimate the models with measurement error in total expenditures and compare the results with those without measurement errors.
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