Estimation of demand systems based on elasticities of substitution

German Coloma ()

No 322, CEMA Working Papers: Serie Documentos de Trabajo. from Universidad del CEMA

Abstract: This paper develops a model for demand-system estimations, whose coefficients are own-price Marshallian elasticities and elasticities of substitution between goods. The model satisfies the homogeneity, symmetry and, eventually, adding-up restrictions implied by consumer theory, and is primarily useful for the estimation of the demands of several goods of the same industry or group of products. The characteristics of the model are compared to other existing alternatives (logarithmic, translog, AIDS and QUAIDS demand systems). The model is finally applied to estimate the demands for several carbonated soft drinks in Argentina, and its results are presented, together with the ones obtained with the other estimation methods.

Keywords: Demand Systems; Elasticity of Substitution; Simultaneous Equations; Carbonated Soft Drinks (search for similar items in EconPapers)
JEL-codes: C30 C51 D12 L66 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2006-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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https://www.ucema.edu.ar/publicaciones/download/documentos/322.pdf (application/pdf)

Related works:
Journal Article: Estimation of Demand Systems Based on Elasticities of Substitution (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:cem:doctra:322

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