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Nesting the Aids and Translog Demand Systems
Abstract
This paper shows that there exists a relatively simple demand model that is consistent with utility maximization, and has nested within it both the almost ideal demand system and translog models. This model is exactly aggregated, then estimated using aggregate U.S. demand data. The results are used to test the relative adequacy of the almost ideal demand system and translog models. Copyright 1989 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
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There is no consensus on which equivalence scale should be applied.
“there has so far been no consensus on which equivalence scale should be applied”
From Assessing differences in household needs: a comparison of approaches for the estimation of equivalence scales using German expenditure data (2021) · cites this paper as Lewbel 1989b
Inequality and poverty measures are sensitive to the specific equivalence scale used.
“It has, however, been pointed out that these measures are sensitive to the specific equivalence scale used”
From Assessing differences in household needs: a comparison of approaches for the estimation of equivalence scales using German expenditure data (2021) · cites this paper as Lewbel 1989b
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References 10 · Cited by 71
Metadata
- Authors
- Lewbel, A.
- Corresponding author
- Lewbel, Arthur
- ORCID
- Lewbel, Arthur
- Venue
- International Economic Review
- Publisher
- JSTOR
- Published
- 1989-05
- Volume
- 30
- Issue
- 2
- Pages
- 349
- ISSN
- 0020-6598 (ISSN-L)
- OpenAlex
- W2011895063
- Cited by
- 71
- References
- 10
- Citations by year
- 2024: 1 · 2023: 2 · 2020: 1 · 2019: 1 · 2018: 1 · 2016: 2 · 2015: 2 · 2013: 3 · 2012: 2
- FWCI
- 11.02
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- International Economic Review (publishedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economics of Agriculture and Food Markets
- Social Sciences › Business, Management and Accounting › Marketing › Consumer Market Behavior and Pricing
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic and Environmental Valuation
- Keywords
- Almost Ideal Demand System, utility maximization, exact aggregation, consumer demand estimation, model adequacy testing
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