Boer, P.M.C. de; Paap, R. - Erasmus University Rotterdam, Econometric Institute - 2009
In applied economic research computable general equilibrium [CGE] models in which the behavior of economic agents are modeled, are widely used. In many CGE models, the Linear Expenditure System [LES] is used to model behavior of the household sector. The disadvantage of LES is that the Engel...