Linearizing the inverse quadratic almost ideal demand system

Toshinobu Matsuda ()

Applied Economics, 2007, vol. 39, issue 3, 381-396

Abstract: This article investigates the linear approximation to the inverse quadratic almost ideal demand system (IQUAIDS), a recently introduced flexible functional form with potential usefulness. Linearizing this nonlinear model is of practical importance because nonstationary data, which are likely to be used in inverse demand systems, can be handled more properly in linear models. The IQUAIDS is linearized by replacing the two aggregator functions with a number of alternative quantity indices and new composite variables. The results of an application to Japanese fresh food demand suggest that the IQUAIDS can be linearized with adequate accuracy in terms of elasticities.

Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/00036840600825779 (text/html)
Access to full text is restricted to subscribers.

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:taf:applec:v:39:y:2007:i:3:p:381-396

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036840600825779

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().