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Estimation of household demand systems with theoretically compatible Engel curves and unit value specifications.

Abstract:
We develop a method for estimation of price reactions using unit value data which exploits the implicit links between quantity and unit value choices. This allows us to combine appealing Engel curve specifications with a model of unit value determination in a way which is consistent with demand theory, unlike methods hitherto prominent in the literature. The method is applied to Czech data.

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Publisher copy:
10.1016/S0304-4076(03)00083-6

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Publisher:
Elsevier
Journal:
Journal of Econometrics More from this journal
Volume:
114
Issue:
2
Pages:
221 - 241
Publication date:
2003-01-01
DOI:
ISSN:
0304-4076


Language:
English
UUID:
uuid:01f2f7c3-6d78-4c38-96a3-9987ad6c6640
Local pid:
oai:economics.ouls.ox.ac.uk:14971
Deposit date:
2011-08-16
ARK identifier:

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