THE INVERSE ALMOST IDEAL DEMAND SYSTEM

James S. Eales and Laurian Unnevehr

No 271270, 1991 Annual Meeting, August 4-7, Manhattan, Kansas from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: A new demand system, related to the Almost Ideal Demand System (AIDS) of Deaton and Muellbauer, is developed and illustrated. This Inverse AIDS (IAIDS) retains all of the desirable theoretical properties of the AIDS model with the exception of, consistent aggregation. An empirical issue is whether a linear approximation will work as well for the IAIDS as it has for the AIDS model, since quantities are not as highly correlated as prices. An application to US meat demand demonstrates that the linear approximation of the IAIDS is excellent, which enhances the ease and range of application.

Keywords: Agricultural and Food Policy; Demand and Price Analysis (search for similar items in EconPapers)
Pages: 25
Date: 1991-08-04
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Citations: View citations in EconPapers (7)

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Related works:
Journal Article: The inverse almost ideal demand system (1994)
Working Paper: The Inverse Almost Ideal Demand System (1991)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea91:271270

DOI: 10.22004/ag.econ.271270

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