Differential consumer demand systems

It is shown in this paper that several well-known systems like the Rotterdam model and the Almost Ideal Demand System can be seen as different parametrizations of the budget share differential equation. Using a third parametrization a new system, called the CBS system, is developed and discussed. Sp...

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Bibliographic Details
Published inEuropean economic review Vol. 27; no. 3; pp. 375 - 390
Main Authors Keller, W.J., Van Driel, J.
Format Journal Article
LanguageEnglish
Published Amsterdam, etc Elsevier B.V 01.01.1985
North Holland Publishing Company, etc
Elsevier Sequoia S.A
Subjects
Consumer
Demand
Estimating techniques
Manyproducts
Mathematical models
Statistical analysis
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Summary:It is shown in this paper that several well-known systems like the Rotterdam model and the Almost Ideal Demand System can be seen as different parametrizations of the budget share differential equation. Using a third parametrization a new system, called the CBS system, is developed and discussed. Special attention is given to the relative price version of the system and in particular to the special case of preference independence. Some estimates for the Netherlands based on time series for 1953–1981, using various approaches, are presented.
ISSN:0014-2921
1873-572X
DOI:10.1016/S0014-2921(85)80021-0