Comparison of Quadratic Expenditure System and Almost Ideal Demand System Based on Empirical Data

Ani Katchova and Wen S. Chern
Additional contact information
Wen S. Chern: University of Illinois at Urbana-Champaign and the Ohio State University

The International Journal of Applied Economics, 2004, vol. 1, issue 1, 55-64

Abstract: Researchers prefer to use a demand system that best fits their data. This paper examines a nonnested test of comparison between the quadratic expenditure system (QES) and the almost ideal demand system (AIDS). We determine which model is more suitable by analyzing the value and the significance of the common coefficient of the two models. We also show that the compound model can be used as a demand system. Using a specific database, we show that the AIDS is a more suitable model than the QES. The empirical results are useful for those interested in food demand structure in China.

Keywords: Demand system; AIDS; QES; nonnested tests; China (search for similar items in EconPapers)
Date: 2004
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www2.selu.edu/orgs/ijae/Journal%201/IJAE%20 ... %2024%2004%20RV4.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ija:ancoec:v:1:y:2004:i:1:p:1-58

Access Statistics for this article

More articles in The International Journal of Applied Economics from Department of General Business, Southeastern Louisiana University Contact information at EDIRC.
Bibliographic data for series maintained by Dr. Yu Hsing ( this e-mail address is bad, please contact ).