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A popular functional form for modeling the consumption block of a computable general equilibrium model (CGE) is the Linear Expenditure System (LES) for which the Engel curves are straight lines. The LES does not allow for the existence of inferior commodities, elastic demand and for gross...
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A popular functional form for modeling the consumption block of a computable general equilibrium model (CGE) is the Linear Expenditure System (LES) for which the Engel curves are straight lines. To allow for more general shapes two other systems have been proposed in recent literature: An...
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