Deaton, A., and J. Muelbauer. 1980a. "An Almost Ideal Demand System." American Economic Review 70: 312-326.  Home/Search   Document Not in Database   Summary   Related Articles   Check

....of the break on the shares of Spain and its trading partners in total supplies. Section 5, finally, contains our conclusions. 2 Specification of the model 2. 1 The Almost Ideal Demand System As said before, we shall use the homogeneity constrained Almost Ideal Demand (AID) System as introduced by Deaton and Muellbauer (1980) in order to describe the long run equilibrium relationships between the shares in total supplies and total real demand and relative prices. Arranging the shares in such a way that the last one represents domestic supplies, the AID System reads as follows: 2 6 6 6 6 4 w t;1 . w ....

Deaton, A. and J. Muellbauer (1980), An almost ideal demand system, American Economic Review, 70, 312-326.

....two year differences are significant. The figure tells a striking story: The average annual bias from 1974 through 1981 is 3.54 ; for ( h b w h gab w y p = 1 1 where a is the share of the food price in the cost of living index. 22 The income coefficient is fairly close to that of Deaton and Muellbauer (1980), but the price coefficient is substantially lower than theirs. 23 I thank Matthew Shapiro for bringing Tobin s paper to my attention, and for sharpening my own approach to permanent income. 24 If 20 of food is at restaurants (about right for 1991) and restaurant food demand is unit elastic, ....

Deaton, Angus, and John Muellbauer (1980), "An Almost Ideal Demand System," American Economic Review, vol 70, pp. 312-326.

....on the coe#cients. A much more reasonable class of demand equations is W it = a 0i a 1i t b # i r t c i g(t, r t ) e it (2) where g(t, r t ) is some function that is common to all of the demand equations. In particular, one of the most frequently employed demand systems in empirical work, Deaton and Muellbauer s (1980) Almost Ideal Demand System (AIDS) is a special case of (2) in which g is a constrained quadratic. We tested for cointegration in the approximate AIDS model, which uses Stone s price index (P # ) to deflate total expenditure, as is common practice in this literature (see, e.g. Deaton and ....

....Muellbauer s (1980) Almost Ideal Demand System (AIDS) is a special case of (2) in which g is a constrained quadratic. We tested for cointegration in the approximate AIDS model, which uses Stone s price index (P # ) to deflate total expenditure, as is common practice in this literature (see, e.g. Deaton and Muellbauer 1980). This amounts to using g(t, r t ) # N j=1 W jt ln r jt in (2) The results are given in the second panel of Table 2. The critical values for the two tests with five regressors are 4.74 and 42.5 respectively. Once again, there is strong evidence for non cointegration in three of the four ....

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Deaton, A. S. and Muellbauer, J. (1980), An Almost Ideal Demand System, American Economic Review 70, 312--326.

....: q(i) q(p,y,z) i=1, n. Ces n quations contiennent n pentes de revenu q y ou les lasticits revenus (i) et n 2 pentes de prix qi pj ou lasticits prix (i,j) B. Modle AIDS Pour estimer les lasticits, nous avons adopt le modle AIDS (Almost Ideal Demand System) qui a t propose par Deaton Mullebauer (1980). Comme son nom l indique, c est jusqu maintenant le meilleur modle pour estimer une fonction de consommation. Sa popularit provient du fait que le modle AIDS est trs gnral (il n exige pas une spcification explicite de la fonction d utilit) 7 , facile estimer (tant linar) et il est conforme ....

Deaton, Angus et Muellbauer, John. 1980a. "An Almost Ideal Demand System." American Economic Review 70:521-532.

....as the demand for the output for the bakery, beverage, and Other Use industries. The expansion is less than proportional for confectionery (0.67) dairy (0.54) and canned, bottled and frozen foods (0. 35) 12 Second stage estimation is based on the Almost Ideal Demand system (AIDS) developed by Deaton and Muellbauer (1980). Sugar s share of total sectoral sweetener demand is regressed on the logs of real prices for sugar and fructose and on the log of the quantity of sweetener demanded in each sector. Unlike other equations discussed in this report, estimated coefficients are not themselves elasticities. They are ....

Deaton, A., and J. Muellbauer. (1980) "An Almost Ideal Demand System," American Economic Review. Vol. 70, pp 312-26.

....several empirical and theoretical considerations. The first empirical regularity is the long history of work indicating the existence of non homothetic preferences. The most well known result is Engel s Law, which states that the budget share devoted to food is declining in total expenditure. Deaton and Muellbauer (1980b) survey the evidence against homothetic preferences. Recently there has been research providing evidence against traditional Engel curve representations with budget shares linear in the log of total expenditure, first specified by Working (1943) and Leser (1963) Bierens and PottButer (1990) and ....

....each of the points in our dataset before performing our welfare calculations on that observation, because makes little economic sense to perform welfare calculations for observations failing the conditions for integrability. The IQUAIDS model is an extension of the Almost Ideal Demand System of Deaton and Muellbauer (1980a) which includes an additional term in the square of the log of total expenditure in each share equation to allow for greater flexibility in modeling expenditure effects in a demand system derived from utility maximizing behavior. Banks, Blundell and Lewbel (1994) show that the IQUAIDS demand ....

Deaton, A.S. and J. Muellbauer (1980a), "An Almost Ideal Demand System," American Economic Review, 70, 312-36.

....the necessary theoretical restrictions, it can be criticised on the grounds that it simply has too few parameters to adequately model, in particular, the 1 2 1 n n ( substitution effects involved in a N commodity demand system. We therefore also consider the Almost Ideal Demand System of Deaton and Muellbauer (1980), viz w m P p u i N t T it i i t t ij jt j N it = a b g ln ln , 1 1 1 H H ; 3.6) where adding up implies a i i N = 1 1, b i i N = 1 0 , and g ij i N = 1 0 ; homogeneity requires g ij j N = 1 0 ; and g g ij ji = ensures Slutsky symmetry. ....

Deaton, A.S. and J. Muellbauer (1980). An almost ideal demand system. American Economic Review 70, 312-326.

....that the tax rate on profit can influence the solution, which is not consistent with profit maximization but can result from value maximization. II. Using the Almost Ideal Demand System to Recover Managers Rankings To implement the model, we adapt the Almost Ideal Demand System developed by Deaton and Muellbauer (1980) to estimate consumers demands and, hence, to recover their rankings of goods and services from budget data. By applying the AID System to estimate the most preferred profit and input demand functions, we recover managers rankings of production plans. As noted above, these rankings may be ....

Deaton, Angus, and John Muellbauer, 1980, "An Almost Ideal Demand System," American Economic Review, 70, 312-326.

....expressed in this paper are those of the authors and should not be attributed to the FDIC. Address for correspondence: Robert Feenstra, Dept. of Economics, University of California, Davis CA 95616; phone (530)752 7022; fax (530)752 9382; e mail rcfeenstra ucdavis.edu. 1. Introduction Deaton and Muellbauer (1980) introduced the Almost Ideal Demand System (AIDS) which satisfies a number of desirable theoretical properties, and is very convenient to estimate. For welfare comparisons, it would be useful to know the corresponding exact price index. We derive an exact index by making use of the associated ....

Deaton, Angus, and John Muellbauer, "An Almost Ideal Demand System," American Economic Review, 70(3), June 1980, 313-326.

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Deaton, A., and J. Muelbauer. 1980a. "An Almost Ideal Demand System." American Economic Review 70: 312-326.

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Deaton, A. and J. Muellbauer (1980), An Almost Ideal Demand System. American Economic Review 70, 312-26.

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Deaton A. S. and J. Muellbauer (1980),"An Almost Ideal Demand System", American Economic Review, 70, 312-36.

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