The Econometrics of Demand Systems

by Edgerton, David L.; Assarsson, Bengt; Hummelmose, Anders; Laurila, Iikka P.; Rickertsen, Kyrre; Vale, Per Halvor

• ISBN13: 9780792341062
• ISBN10: 0792341066
• Format: Hardcover
• Copyright: 1996-06-01
• Publisher: Kluwer Academic Pub

Summary

This book presents an applied econometric analysis of the demand for food in the Nordic countries. A system of demand equations, based on the neoclassical theory of consumer demand, is analyzed using modern econometric techniques for estimation and evaluation. The models investigated are mainly dynamic versions of the Almost Ideal Demand System, which was first proposed in static form by Deaton and Muellbauer. The authors have incorporated recent econometric advances in misspecification testing, allowing for a thorough investigation of the models. The authors construct well-specified demand systems that explain the historical development of the consumption of different food items in the Nordic countries. Equal attention is paid to the presentation of specific results concerning elasticities, tests, etc., and to the description of the methodology used. The agricultural economist will find the results and the methodology new and interesting. The applied econometrician will see how a thorough and exhaustive analysis of a data set can be performed and the theoretical econometrician will see how techniques are being applied.

Table of Contents

Glossary
Preface
Introduction	p. 3
The Consumption of Food in The Nordic Countries	p. 7
Consumer Demand Theory	p. 55
The Specification and Estimation of Demand Systems	p. 63
A Common Dynamic AIDS Model for The Nordic Countries	p. 93
Extensions to the Common Model	p. 141
The Almost Ideal Demand System in Error Correction Form	p. 195
Projections of Future Consumption in Finland	p. 205
Household and Aggregate Time-Series Data	p. 223
The Importance of Socioeconomic Variables	p. 239
Testing Adding Up in the Common Model	p. 245
Conclusions	p. 259
Appendix 1: Publications and Working Papers	p. 265
Appendix 2: Data Appendix	p. 271
Bibliography	p. 273
Author Index	p. 281
Subject Index	p. 283
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