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When Do Estimated Demand Systems Automatically Satisfy Adding Up?

Edgerton, David LU (1996) 7th Econometric Society World Congress In Working Papers, Department of Economics, Lund University
Abstract
Conditions are presented for when estimated demand systems automatically satisfy adding up. It is shown that there exist nonlinear demand systems (such as the Almost Ideal Demand System) where adding up is allowed in the model, but where it is not automatically satisfied for the LS and SUR estimates. In these situations it is possible to test the applicability of the model as regards adding up. The results are applied to a small model for the consumption of food in Sweden, and it is shown that a test of adding up can be useful in a misspecification analysis.
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Chapter in Book/Report/Conference proceeding
publication status
published
subject
keywords
TESTS OF RESTRICTIONS, DEMAND ANALYSIS, ALLOCATION MODELS, ADDING UP
in
Working Papers, Department of Economics, Lund University
publisher
Department of Economics, Lund Universtiy
conference name
7th Econometric Society World Congress
language
English
LU publication?
yes
id
2660107a-0b32-476f-9b21-76fd52b691c5 (old id 1387621)
alternative location
http://www.nek.lu.se/nekded/Research/Publications/Adding_Up.pdf
date added to LUP
2009-04-20 12:27:26
date last changed
2016-04-16 09:19:07
@inproceedings{2660107a-0b32-476f-9b21-76fd52b691c5,
  abstract     = {Conditions are presented for when estimated demand systems automatically satisfy adding up. It is shown that there exist nonlinear demand systems (such as the Almost Ideal Demand System) where adding up is allowed in the model, but where it is not automatically satisfied for the LS and SUR estimates. In these situations it is possible to test the applicability of the model as regards adding up. The results are applied to a small model for the consumption of food in Sweden, and it is shown that a test of adding up can be useful in a misspecification analysis.},
  author       = {Edgerton, David},
  booktitle    = {Working Papers, Department of Economics, Lund University},
  keyword      = {TESTS OF RESTRICTIONS,DEMAND ANALYSIS,ALLOCATION MODELS,ADDING UP},
  language     = {eng},
  publisher    = {Department of Economics, Lund Universtiy},
  title        = {When Do Estimated Demand Systems Automatically Satisfy Adding Up?},
  year         = {1996},
}