Lyssiotou, Panayiota; Pashardes, Panos; Stengos, Thanasis - University of Cyprus Department of Economics - 2001
We propose a new generalised rank-3 demand system which nests all known (and new) rank-3 and rank-2 demand systems derived from the Quadratic Logarithmic (QL) cost function. We investigate its statistical adequacy against commonly en-countered alternatives using U.K. household data.