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The Specification and Estimation of Demand Systems

  • David L. Edgerton
  • Bengt Assarsson
  • Anders Hummelmose
  • Ilkka P. Laurila
  • Kyrre Rickertsen
  • Per Halvor Vale
Part of the Advanced Studies in Theoretical and Applied Econometrics book series (ASTA, volume 34)

Abstract

In the previous chapter we discussed some of the principal notions behind the theory of consumer demand. In this chapter we consider how to make this theory operational.

Keywords

Price Elasticity Demand System Budget Share Group Expenditure Expenditure Elasticity 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

  1. 1.
    Various intuitively plausible criteria, such as regularity, domain of applicability, flexibility, etc., have been suggested to assist us with this choice, see Lau (1986) and Thompson (1988) for example.Google Scholar
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    The true cost of living index is only exactly independent of u if the group preferences are homothetic. Using the theorem of Wilks (1938) described earlier, we can expect the approximation we have described to be adequate as long as the number of elementary commodities is large, see also Edgerton (1993a).Google Scholar
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Copyright information

© Kluwer Academic Publishers 1996

Authors and Affiliations

  • David L. Edgerton
    • 1
  • Bengt Assarsson
    • 2
  • Anders Hummelmose
    • 3
  • Ilkka P. Laurila
    • 4
    • 5
  • Kyrre Rickertsen
    • 6
  • Per Halvor Vale
    • 6
  1. 1.Lund UniversitySweden
  2. 2.Uppsala UniversitySweden
  3. 3.LandbocentretBrønderslevDenmark
  4. 4.University of HelsinkiFinland
  5. 5.Agricultural Economics Research InstituteHelsinkiFinland
  6. 6.Agricultural University of NorwayÅsNorway

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