DEMAND FUNCTIONS: AN APPLICATION TO THE JAPANESE EXPENDITURE PATTERN.
The first section of this paper deals with the properties any demand system should have if it is derived from any utility function. We find that the utility function under consideration could not be homogeneous if we impose the condition that the income elasticity is not one for all commodities. We...
| Publicado en: | Econometrica Vol. 37; no. 2; pp. 257 - 275 |
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| Formato: | Artículo |
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Wiley-Blackwell
Apr69
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=6859626&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 6859626 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00129682 ECN jtl: Econometrica issn: 00129682 maglogo: Y pubinfo: dt: Apr69 vid: 37 iid: 2 pid: 480 pub: Wiley-Blackwell artinfo: ui: 6859626 10.2307/1913535 ppf: 257 ppct: 18 formats: tig: atl: DEMAND FUNCTIONS: AN APPLICATION TO THE JAPANESE EXPENDITURE PATTERN. aug: au: Yoshihara, Kunio affil: University of Michigan su: Demand function Utility functions Mathematical models of economics Economic demand Elasticity (Economics) Income Econometrics Economics Mathematical economics sug: subj: Demand function Utility functions Mathematical models of economics Economic demand Elasticity (Economics) Income Econometrics Economics Mathematical economics ab: The first section of this paper deals with the properties any demand system should have if it is derived from any utility function. We find that the utility function under consideration could not be homogeneous if we impose the condition that the income elasticity is not one for all commodities. We then examine four major demand systems often used in empirical studies to see if they meet the properties listed in the first section. We find that Stone's linear expenditure system and Houthakker's indirect addilog system pass the theoretical tests, whereas the double log system and Theil's differential specifications do not. We fit the two theoretically satisfactory systems to Japanese data, and find that Stone's system explains the pattern of Japanese demand far better than Houthakker's. We, thus, suggest, on a theoretical as well as empirical ground, that Stone's linear expenditure system shall be the demand system in future econometric models in Japan. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y dt: @attributes: year: 1969 holdings: @attributes: islocal: N |
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