Quantity Versus Shares in Estimating Demand Systems

This paper considers the estimation and testing of demand systems when the number of sample goods is smaller than the number of commodity choices available to consumers. In this case, the demand system is incomplete. The large majority of papers that appeared in the literature specifies and estimates a demand system in share format even when the system may be incomplete. The criterion for deciding whether a share format is admissible without loss of information is a test of the adding-up condition. This test, however, requires the estimation of a demand system in quantity format.


Issue Date:
2012
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/124575
Total Pages:
31
JEL Codes:
C01; C31; C33; D12
Series Statement:
Working Papers
12-003




 Record created 2017-04-01, last modified 2017-04-26

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