266
Views
10
CrossRef citations to date
0
Altmetric
Original Articles

Time-varying parameters in the almost ideal demand system and the Rotterdam model: will the best specification please stand up?

&
Pages 4169-4183 | Published online: 12 Mar 2013

References

  • Alessie , R and Kapteyn , A . 1991 . Habit formation, interdependent preferences and demographic effects in the almost ideal demand system . The Economic Journal , 101 : 404 – 19 .
  • Alston , JM and Chalfant , JA . 1991 . Can we take the con out of the meat demand studies? . Western Journal of Agricultural Economics , 16 : 36 – 48 .
  • Alston , JM and Chalfant , JA . 1993 . The silence of the lambdas: a test of the almost ideal and Rotterdam models . American Journal of Agricultural Economics , 75 : 304 – 13 .
  • Alston , JM , Foster , KA and Green , RD . 1994 . Estimating elasticities with the linear approximate almost ideal demand system: some Monte Carlo results . The Review of Economics and Statistics , 76 : 351 – 6 .
  • Barnett , WA . 1977 . Recursive subaggregation and generalized hypocycloidal demand model . Econometrica , 45 : 1117 – 36 .
  • Barnett , WA . 1979 . Theoretical foundations for the Rotterdam model . The Review of Economic Studies , 46 : 109 – 30 .
  • Barnett , WA and Choi , S . 1989 . A Monte Carlo study of tests of blockwise weak separability . Journal of Business and Economic Statistics , 7 : 363 – 77 .
  • Barnett , WA and Seck , O . 2008 . Rotterdam model versus almost ideal demand system: will the best specification please stand up? . Journal of Applied Econometrics , 23 : 795 – 824 .
  • Barnett , WA and Serlertis , A . 2008 . Consumer preferences and demand systems . Journal of Econometrics , 147 : 210 – 24 .
  • Barten , AP . 1964 . Consumer demand functions under conditions of almost additive preferences . Econometrica , 32 : 1 – 38 .
  • Barten , AP . 1968 . Estimating demand systems . Econometrica , 36 : 213 – 51 .
  • Barten , AP . 1969 . Maximum likelihood estimation of a complete system of demand equations . European Economic Review , 1 : 7 – 73 .
  • Barten , AP . 1977 . The system of consumer demand function approach: a review . Econometrica , 45 : 23 – 50 .
  • Barten , AP . 1993 . Consumer allocation models: choice of functional form . Empirical Economics , 18 : 129 – 58 .
  • Basmann , RL . 1954–1955 . A note on Mr. Ichimura's definition of related good . The Review of Economic Studies , 22 : 67 – 9 .
  • Basmann , RL . 1956 . A theory of demand with variable consumer preferences . Econometrica , 24 : 47 – 58 .
  • Basmann , RL . 1972 . “ Variable consumer preferences: postscript ” . In The Evolution of Modern Demand Theory , Edited by: Ekelund , R. , Furuboth , E. and Gramm , W. P. 471 – 82 . Lexington : Lexington Books .
  • Basmann , RL . 1985 . A theory of serial correlation of stochastic taste changers in direct utility functions . Econometric Theory , 1 : 192 – 210 .
  • Basmann , RL , Hayes , K , McAleer , M , McCarthy , I and Solttje , DJ . 2009 . “ The GFT utility function ” . In Quantifying Consumer Preferences , Edited by: Slottje , D. J. 119 – 48 . Cambride, MA : Contributions to Economic Analysis, Emerald Group Publishing .
  • Blackorby , C , Primont , D and Russell , RR . 2007 . The Morishima gross elasticity of substitution . Journal of Productivity Analysis , 28 : 203 – 8 .
  • Blackorby , C and Russell , RR . 1975 . The Partial Elasticity of Substitution , San Diego : Department of Economics, University of California .
  • Blackorby , C and Russell , RR . 1981 . The Morishima elasticity of substitution: symmetry, constancy, separability, and its relationship to the Hicks-Allen elasticities . Review of Economic Studies , 48 : 147 – 58 .
  • Blackorby , C and Russell , RR . 1989 . Will the real elasticity of substitution please stand up? (A comparison of the Allen/Uzawa and Morishima elasticities) . The American Economic Review , 79 : 882 – 8 .
  • Brester , GW and Wohlgenant , MK . 1991 . Estimating interrelated demands for meats using new measures for ground and table cut beef . American Journal of Agricultural Economics , 73 : 1182 – 94 .
  • Brown , MG and Lee , JY . 2002 . Restriction on the effects of preference variables in the Rotterdam model . Journal of Agricultural and Applied Economics , 34 : 17 – 26 .
  • Bryon , RP . 1984 . On the flexibility of the Rotterdam model . European Economic Review , 24 : 273 – 83 .
  • Chavas , JP . 1983 . Structural change in the demand of meat . American Journal of Agricultural Economics , 65 : 148 – 53 .
  • Christensen , LR , Jorgenson , DW and Lau , LJ . 1975 . Transcendental logarithmic utility functions . American Economic Review , 65 : 367 – 83 .
  • Dameus , A , Richter , FGC , Brorsen , BW and Sukhdial , KP . 2002 . AIDS versus the Rotterdam demand system: a Cox test with parametric bootstrap . Journal of Agricultural and Resource Economics , 27 : 335 – 47 .
  • Deaton , A and Muellbauer , J . 1980 . An almost ideal demand system . The American Economic Review , 70 : 312 – 26 .
  • Diewert , WE . 1971 . An application of the Shephard duality theorem: a generalized Leontief production function . The Journal of Political Economy , 79 : 461 – 507 .
  • Doan , TA . 2010a . Practical issues with state-space models with mixed stationary and non-stationary dynamics , Technical Paper No. 2010-1, Estima .
  • Doan, T. A. (2010b) RATS: Regression Analysis for Time Series: Handbook for State-Space Models, Technical Report, Estima, Evanson, IL. Available at http://www.estima.com/ (accessed 31 January 2013)
  • Doan , TA . 2011 . State space methods in RATS . Journal of Statistical Software , 41 : 1 – 16 .
  • Doran , HE . 1992 . Constraining Kalman filter and smoothing estimates to satisfy time varying restrictions . The Review of Economics and Statistics , 74 : 568 – 72 .
  • Doran , HE and Rambaldi , AN . 1997 . Applying linear time-varying constraints to econometric models: with an application to demand systems . Journal of Econometrics , 79 : 83 – 95 .
  • Eales , JS and Unnevehr , LJ . 1988 . Demand for beef and chicken products: separability and structural change . American Journal of Agricultural Economics , 70 : 521 – 32 .
  • Estima. (2007a) RATS: Regression Analysis for Time Series, Reference Manual, Estima, Evanson, IL, Version 8. Available at http://www.estima.com/ (accessed 31 January 2013)
  • Estima. (2007b) RATS: Regression Analysis for Time Series, User's Manual, Estima, Evanson, IL, Version 8. Available at http://www.estima.com/ (accessed 31 January 2013)
  • Gaertner , W . 1974 . A dynamic model of interdependent consumer behavior . Journal of Economics , 34 : 327 – 44 .
  • Green , R and Alston , JM . 1990 . Elasticities in the AIDS model . American Journal of Agricultural Economics , 72 : 442 – 5 .
  • Green , R and Alston , JM . 1991 . Elasticities in AIDS models: a clarification and extension . American Journal of Agricultural Economics , 73 : 874 – 5 .
  • Hahn , WF . 1994 . Elasticities in AIDS models: comment . American Journal of Agricultural Economics , 76 : 972 – 7 .
  • Harvey , AC . 1989 . Forecasting, Structural Time Series Models and the Kalman Filter , Cambridge : Cambridge University Press .
  • Ichimura , S . 1950 . A critical note on the definition of related goods . The Review of Economic Studies , 18 : 179 – 83 .
  • Iootty , M , Pinto Jr , H and Ebeling , F . 2009 . Automotive fuel consumption in Brazil: applying static and dynamic systems of demand equations . Energy Policy , 37 : 5326 – 33 .
  • Kalonda-Kanyama , I . 2012 . “ Shifting preferences and time-varying parameters in demand analysis: a Monte Carlo experiment ” . In PhD Thesis , University of Kansas .
  • Kapteyn , A , Van de Geer , S , Van de Stadt , H and Wansbeek , T . 1997 . Interdependent preferences: an econometric analysis . Journal of Applied Econometrics , 12 : 665 – 86 .
  • Karni , E and Schmeidler , D . 1990 . Fixed preferences and changing tastes . The American Economic Review , 80 : 262 – 7 .
  • Koopman , SJ . 1997 . Exact initial Kalman filtering and smoothing for nonstationary time series models . Journal of the American Statistical Association , 92 : 1630 – 8 .
  • Leybourne , SJ . 1993 . Empirical performance of the AIDS model: constant-coefficient versus time-varying-coefficient approaches . Applied Economics , 25 : 453 – 63 .
  • Li , G , Song , H and Witt , SF . 2006 . Time varying parameter and fixed parameter linear AIDS: an application to tourism demand forecasting . International Journal of Forecasting , 22 : 57 – 71 .
  • Mazzocchi , M . 2003 . Time-varying coefficient in the almost ideal demand system: an empirical appraisal . European Review of Agricultural Economics , 30 : 241 – 70 .
  • Morishima , M . 1967 . A few suggestions on the theory of elasticity . Keizai Hyoron (Economic Review) , 16 : 149 – 50 .
  • Moschini , G . 1995 . Units of measurement and the Stone index in demand system estimation . American Journal of Agricultural Economics , 77 : 63 – 8 .
  • Moschini , G and Meilke , KD . 1989 . Modeling the pattern of structural change in US meat demand . American Journal of Agricultural Economics , 71 : 253 – 61 .
  • Nzuma , JM and Sarker , R . 2010 . An error corrected almost ideal demand system for major cereals in Kenya . Agricultural Economics , 41 : 43 – 50 .
  • Pollak , RA . 1976 . Interdependence preferences . The American Economic Review , 66 : 309 – 20 .
  • Pollak , RA . 1978 . Endogenous tastes in demand and welfare analysis . The American Economic Review , 68 : 374 – 9 .
  • Sobel , J . 2005 . Interdependent preferences and reciprocity . Journal of Economic Literature , 43 : 392 – 436 .
  • Taljaard , P , van Schalkwyk , H and Alemu , Z . 2006 . Choosing between the AIDS and Rotterdam models: a meat demand analysis case study . Agrekon , 42 : 158 – 72 .
  • Theil , H . 1965 . The information approach to demand analysis . Econometrica , 33 : 67 – 87 .
  • Theil , H . 1971 . Principles of Econometrics , New York : John Wiley & Sons .
  • Theil , H . 1975a . Theory and Measurement of Consumer Demand , Vol. 1, , Amsterdam : North-Holland .
  • Theil , H . 1975b . Theory and Measurement of Consumer Demand , Vol. 2, , Amsterdam : North-Holland .
  • Theil , H . 1980a . System-wide Approach to Microeconomics , Chicago : University of Chicago Press .
  • Theil , H . 1980b . System-wide Exploration in International Economics: Input-Output Anal-ysis and Marketing Research , New York : North-Holland Publishing Company .
  • Tintner , G . 1952 . Complementarity and shifts in demand . Metroeconomica , 4 : 1 – 4 .

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.