AIDS and separability: a non sequitur

Jonq-Ying Lee, Mark G. Brown and James Seale ()

No 52879, Research papers from Florida Department of Citrus

Abstract: The almost ideal demand system (AIDS) is commonly used to study demand for agricultural commodities and groups of commodities. Increasingly, separability has been utilized in conjunction with the AIDS to estimate conditional demand systems as well as to improve upon precision of parameter estimates. The paper shows that separability conditions are inconsistent with use of the AIDS and that tests of separability with the AIDS are problematic.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Pages: 21
Date: 1992
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Persistent link: https://EconPapers.repec.org/RePEc:ags:fdcrrp:52879

DOI: 10.22004/ag.econ.52879

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