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A Neural Network Demand System

Julien Boelaert ()
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Julien Boelaert: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

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Abstract: We introduce a new type of demand system using a feedforward artificial neural network. The neural network demand system is a flexible system that requires few hypotheses, has no roots in consumer theory but may be used to test it. We use the system to estimate demand elasticities on micro data of household consumption in Canada between 2004 and 2008, and compare the results to those of the quadratic almost ideal demand system.

Keywords: Estimating demand systems; neural networks; flexible forms; Quadratic Almost Ideal Demand System (QUAIDS); Systèmes de demande; réseaux de neurones artificiels; formes flexibles (search for similar items in EconPapers)
Date: 2013-12
New Economics Papers: this item is included in nep-cmp and nep-ore
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Published in 2013

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Handle: RePEc:hal:journl:halshs-00917810