Hostname: page-component-cd9895bd7-dzt6s Total loading time: 0 Render date: 2024-12-26T18:25:57.342Z Has data issue: false hasContentIssue false
  • English
  • Français

Complete systems of demand equations: some thoughts about aggregation and functional form

Published online by Cambridge University Press:  17 August 2016

A.P. Barten
A.P. Barten*
Affiliation:
K.U.L. — Katholieke Universiteit te Leuven — C.O.R.E.
Get access

Extract

Constructing complete demand systems is an example of the ideal type of econometrics. It uses a well-developed theory, an extensive set of data and a refined estimation technique. In particular, a strong relationship between theory and estimation distinguishes it from other empirical economic studies. This strong relationship is at the same time a source of possibilities and a source of problems. Here, the focus will be on some problems caused by the fact that the theory is about individual behaviour while the data is about aggregate behaviour and by the fact that the theory is not much help in specifying the functional form of the system, which is obviously needed for estimation. These two problems are interrelated to a certain extent and have not yet been solved satisfactorily.

Type
Research Article
Information
Recherches Économiques de Louvain/ Louvain Economic Review , Volume 40 , Issue 1 , 1974 , pp. 3 - 20
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 1974 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Barten, A.P. (1969) «Maximum Likelihood Estimation of a Complete System of Demand Equations», European Economic Review, Vol. 1, pp. 7–73.10.1016/0014-2921(69)90017-8Google Scholar
Brown, A. and Deaton, A. (1972) «Surveys in Applied Economics: Models of Consumer Behaviour», The Economic Journal, Vol. 82, pp. 1145–1236.10.2307/2231303Google Scholar
Brown, M. and Heien, D. (1972) «The S-Branch Utility Tree: a Generalization of the Linear Expenditure System», Econometrica, Vol. 40, pp. 737–747.10.2307/1912967Google Scholar
Deaton, A.S. (1972) «The Analysis of Consumer Demand in the United Kingdom, 1900–1970» Mimeographed, Department of Applied Economics, University of Cambridge.Google Scholar
Fourgeaud, C. et Nataf, A. (1959) «Consommation en Prix et Revenu Réels et Théorie des Choix», Econometrica, Vol. 27, pp. 329–354.10.2307/1909466Google Scholar
Goldberger, A.S. (1969) «Directly Additive Utility and Constant Marginal Budget Shares», Review of Economic Studies, Vol. 36, pp. 251–254.10.2307/2296841Google Scholar
Katzner, D.W. (1968) «A Note on the Differentiability of Consumer Demand Functions», Econometrica, Vol. 36, pp. 415–418.10.2307/1907498Google Scholar
McFadden, D. (1964) «Existence Conditions for Theil-Type Preferences», mimeographed discussion paper, Department of Economics, University of California, Berkeley.Google Scholar
Parks, R.W. (1969) «Systems of Demand Equations: An Empirical Comparison of Alternative Functional Forms», Econometrica, Vol. 37, pp. 629–650.10.2307/1910439Google Scholar
Slutsky, E. (1915), (1953) «Sulla Teoria del Bilancio del Consomatore», Giornale degli Economisti, Vol. 51, pp. 1–26. English translation in Stigler, G.J., and Boulding, K. (editors). Readings in Price Theory. Allen and Unwin, London, pp. 26–56.Google Scholar
Theil, H. (1965) «The Information Approach to Demand Analysis», Econometrica, Vol. 33, pp. 67–87.10.2307/1911889Google Scholar