Elasticity of Consumer Demand: Estimation Using a Quadratic Almost Ideal Demand System

Gostkowski Michał ()
Additional contact information
Gostkowski Michał: Warsaw University of Life Sciences – SGGW, Warsaw, Poland

Econometrics. Advances in Applied Data Analysis, 2018, vol. 22, issue 1, 68-78

Abstract: This paper analyzes consumer demand using a Quadratic Almost Ideal Demand System (QUAIDS), which is an extension of an Almost Ideal Demand System (a complete demand system). Complete demand system models can be used to find the relationships that are impossible to discover using single-equation models. Additionally, the QUAIDS model can be used to model a nonlinear Engel curve. The research was based on household microeconomic data collected by GUS (the Polish Central Statistical Office) in the period 1999-2015. The complete demand model has been extended by demographic variable. The results show that the QUAIDS model does not reduce to the AIDS model and is an adequate tool to analyze consumer demand.

Keywords: complete demand system; Quadratic Almost Ideal Demand System; QUAIDS; elasticity of demand (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.15611/eada.2018.1.05 (text/html)

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:vrs:eaiada:v:22:y:2018:i:1:p:68-78:n:5

DOI: 10.15611/eada.2018.1.05

Access Statistics for this article

Econometrics. Advances in Applied Data Analysis is currently edited by Józef Dziechciarz

More articles in Econometrics. Advances in Applied Data Analysis from Sciendo
Bibliographic data for series maintained by Peter Golla ().