Dhar, Tirtha Pratim; Chavas, Jean-Paul; Gould, Brian W. - Zwick Center for Food and Resource Policy, Department … - 2002
This article explores the issue of price and expenditure endogeneity in empirical demand analysis. The analysis focuses … demand for carbonated soft drinks. Using an Almost Ideal Demand System (AIDS) specification, we strongly reject exogeneity … for both prices and expenditures. We find that accounting for price/expenditures endogeneity significantly impacts demand …