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A Neural Network Demand System

Julien Boelaert ()
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Julien Boelaert: Centre d'Economie de la Sorbonne, https://centredeconomiesorbonne.cnrs.fr

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: We introduce a new type of demand system using a feedforward artificial neural network. The neural network demand system is a flexible system that requires few hypotheses, has no roots in consumer theory but may be used to test it. We use the system to estimate demand elasticities on micro data of household consumption in Canada between 2004 and 2008, and compare the results to those of the quadratic almost ideal demand system

Keywords: Estimating demand systems; neural networks; flexible forms; Quadratic Almost Ideal Demand System (QUAIDS) (search for similar items in EconPapers)
JEL-codes: C45 D12 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2013-12
New Economics Papers: this item is included in nep-cmp and nep-ict
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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:13081

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