Summary
This paper attempts to capture the non-linearity of income responses of fairly disaggregated item groups with the help of a quadratic system of demand equations, introduced herein. Empirical performances of the quadratic system and some other models have been examined using Indian consumer expenditure data.
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The author wishes to thank Professor Dipankor Coondoo and the referees for thei helpful comments. Thanks are also due to Professor A. Deaton for providing the NLFIML computer program.
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Majumder, A. Measuring income responses: A log-quadratic demand model for consumers in India. Empirical Economics 17, 315–321 (1992). https://doi.org/10.1007/BF01206290
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DOI: https://doi.org/10.1007/BF01206290