ON THE ESTIMATION OF DYNAMIC DEMAND FUNCTIONS.

The present work was motivated initially by a desire to devise a better method of estimating the additive quadratic model (AQM) than that used by H.S. Houthakker and L.D. Taylor. In particular, Houthakker and Taylor observed a tendency for the estimated marginal utility of income to decrease sharply...

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Publicado en:Review of Economics & Statistics Vol. 54; no. 4; pp. 459 - 466
Autores principales: Taylor, Lester D., Weiserbs, Daniel
Formato: Artículo
Publicado: MIT Press Nov72
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: ON THE ESTIMATION OF DYNAMIC DEMAND FUNCTIONS.
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          Taylor, Lester D.
          Weiserbs, Daniel
      su:
        Demand function
        Additive functions
        Elasticity (Economics)
        Mathematical models of economics
        Regression analysis
        Economic demand
        Utility theory
        Marginal utility
      sug:
        subj:
          Demand function
          Additive functions
          Elasticity (Economics)
          Mathematical models of economics
          Regression analysis
          Economic demand
          Utility theory
          Marginal utility
      ab: The present work was motivated initially by a desire to devise a better method of estimating the additive quadratic model (AQM) than that used by H.S. Houthakker and L.D. Taylor. In particular, Houthakker and Taylor observed a tendency for the estimated marginal utility of income to decrease sharply at the very end of the sample period, and averred that this probably reflected a defect in the method of estimation However, once the authors began exploring this, it became clear that the defect was in the quadratic utility function itself. Accordingly, they then undertook a critical look at the appropriateness of the AQM as a tool for empirical research, and in so doing decided to do the same with the linear expenditure system (LES). Estimation of both models has proceeded using method II of Houthakker and Taylor, which is the method that they themselves ultimately settled on and which the authors initially sought to supplant. However, once they began considering various alternative methods in detail, it became evident that method II, which in fact is equivalent to method I, except for the first iteration, which probably cannot be improved upon.
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      doctype: Article
      src: R
    language: English
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