Tricks with Hicks: The EASI Demand System.

We invent Implicit Marshallian demands, which combine desirable features of Hicksian and Marshallian demands. We propose and estimate the Exact Affine Stone Index (EASI) implicit Marshallian demand system. Like the Almost Ideal Demand (AID) system, EASI budget shares are linear in parameters given r...

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Publicado en:American Economic Review Vol. 99; no. 3; pp. 827 - 864
Autores principales: Lewbel, Arthur, Pendakur, Krishna
Formato: Artículo
Publicado: American Economic Association June 2009
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Tricks with Hicks: The EASI Demand System.
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          Lewbel, Arthur
          Pendakur, Krishna
      su:
        Mathematical models of consumption
        Economic demand
        Mathematical models
      sug:
        subj:
          Mathematical models of consumption
          Economic demand
          Mathematical models
      ab: We invent Implicit Marshallian demands, which combine desirable features of Hicksian and Marshallian demands. We propose and estimate the Exact Affine Stone Index (EASI) implicit Marshallian demand system. Like the Almost Ideal Demand (AID) system, EASI budget shares are linear in parameters given real expenditures. However, unlike the AID, EASI demands can have any rank and its Engel curves can have any shape over real expenditures. EASI error terms equal random utility parameters to account for unobserved preference heterogeneity. EASI demand functions can be estimated using GMM or three stage least squares, and, like AID, an approximate EASI model can be estimated by linear regression. Reprinted by permission of the publisher.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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