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Gorman Engel curves are extended to incomplete systems. The roles of Slutsky symmetry and homogeneity/adding up are isolated in the rank and functional form restrictions for Gorman systems. Symmetry determines the rank condition. The maximum rank is three for incomplete and complete systems....
Persistent link: https://www.econbiz.de/10010537354
macromodels. We use a statistical distributional approach of aggregation to test these properties on the UK-Family Expenditure …
Persistent link: https://www.econbiz.de/10010263071
consumption expenditure) of a large and heterogeneous population. The starting point of our aggregation analysis is a …
Persistent link: https://www.econbiz.de/10010263100
expenditure of a heterogeneous population. The starting point of our aggregation analysis is a dynamic behavioral relation on the …
Persistent link: https://www.econbiz.de/10011539806
-wide preference parameters, which are useful for policy evaluation. The underlying demand-aggregation properties that this approach …, aggregation can be rejected if appropriate data violate an affine equation regarding how much individuals benefit from within …
Persistent link: https://www.econbiz.de/10010419864
In 1960, Working noted that time aggregation of a random walk induces serial correlation in the first difference that … time aggregation has quantitatively large effects. Using new techniques to correct for the problem, I find the estimate for …
Persistent link: https://www.econbiz.de/10012182399
An exactly aggregable system of Gorman Engel curves for U.S. food consumption is developed and implemented. Box-Cox transformations on prices and income nest functional form. The model nests rank up to rank three. The model is estimated by nonlinear three-stage least squares with annual time...
Persistent link: https://www.econbiz.de/10005211979
This chapter presents the indirect preferences for all full rank Gorman and Lewbel demand systems. Each member in this class of demand models is a Generalized Quadratic Expenditure System (GQES). This representation allows applied researchers to choose a small number of price indices and a...
Persistent link: https://www.econbiz.de/10005727820
The following question is analyzed: under what circumstances can one a stable (i.e., time invariant) functional relationship which links aggregate consumption in period t with aggregate income in period t and another "determinants" of consumtion that refer to periods prior to period t and can be...
Persistent link: https://www.econbiz.de/10004968192
Gorman’s theory of demand is extended comprehensively to incomplete systems. The incomplete systems approach dramatically increases this class of models. The separate roles of symmetry and adding up are identified in the rank and the functional form of this class of models. We show that...
Persistent link: https://www.econbiz.de/10011130828