Tricks With Hicks: The Easi Demand System

Lewbel, Arthur; Pendakur, Krishna

doi:10.2139/ssrn.913080

Cited by 80 publications

(207 citation statements)

References 28 publications

Supporting

Mentioning

201

Contrasting

Unclassified

Order By: Relevance

“…The exact affine Stone index (EASI; Lewbel and Pendakur, 2009;Pendakur, 2009) demand system is used to model household consumption behavior. It rests on the assumption that households choose an optimal mix of commodities given their budget constraints.…”

Section: Modelling Household Behaviourmentioning

confidence: 99%

“…Its starting point is the following approximation to the households' expenditure function (Lewbel and Pendakur, 2009):…”

Section: Modelling Household Behaviourmentioning

confidence: 99%

“…We follow Lewbel and Pendakur (2009) and use the iterated three-stage least squares (3SLS) estimator which is less computationally demanding than the GMM estimator.…”

Section: Modelling Household Behaviourmentioning

confidence: 99%

See 2 more Smart Citations

The Distribution of Material Footprints in Germany

Pothen

Reaños

2018

SSRN Journal

View full text Add to dashboard Cite

Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. The Distribution of Material Footprints in Germany

show abstract

Section: Modelling Household Behaviourmentioning

confidence: 99%

“…Its starting point is the following approximation to the households' expenditure function (Lewbel and Pendakur, 2009):…”

Section: Modelling Household Behaviourmentioning

confidence: 99%

See 1 more Smart Citation

The Distribution of Material Footprints in Germany

Pothen

Reaños

2018

SSRN Journal

View full text Add to dashboard Cite

show abstract

“…Since these pioneering works, a gradually increasing flow of papers on the PED has appeared in the literature, defining and estimating different consumer demand systems. 1 Even if it is impossible to mention all the contributions to this topic, some of them are particularly worthy of mention (Schultz 1938;Leser 1941;Stone 1954;Theil 1967;Barten 1968;Pollak and Wales 1969;Deaton and Muellbauer 1980;Banks et al 1997;Lewbel and Pendakur 2009). These works generally follow an empirical approach to provide the PED estimates, relegating the economic theory to a normative set of restrictions based on the consumer behaviour axioms (Barten 1964).…”

Section: Doi: 1017221/70/2016-agriceconmentioning

confidence: 99%

Beyond the mean: Estimating consumer demand systems in the tails

Furno¹,

Caracciolo²

2017

AGR ECON-CZECH

View full text Add to dashboard Cite

Th e study proposes a novel approach to estimate price demand elasticities at the various levels of expenditures. Th rough the expectile estimator, the demand system can be estimated not only at the mean, as is generally done when implementing the OLS, but also at the lower and higher levels of expenditure. A simple demand system of equations focusing on fi ve basic goods: Food, Recreation, Clothing, Transport, Rent, using the Canadian Family Expenditure Survey data was estimated. Th e comparison of the estimated elasticity of each commodity at the selected expectiles is tested to verify the statistical relevance of any diff erence among the estimates in the tails and those computed at the centre of the conditional distribution. Th e results show with a strong evidence that the elasticity of Food and Recreation grows across the expectiles. Clothing variations are less evident, while the Transport and Rent elasticity is basically constant across the expectiles.

show abstract

“…Rather than assuming that preferences are translation homothetic, here we follow Lewbel and Pendakur (2006) and proxy utility with income and estimate what they call pseudo-Marshallian demands.…”

Section: Relevant Consumer Theorymentioning

confidence: 99%

Estimating demand with distance functions: Parameterization in the primal and dual

Färe

Grosskopf

Hayes

et al. 2008

Journal of Econometrics

View full text Add to dashboard Cite

Our purpose is to investigate the ability of different parametric forms to 'correctly' estimate consumer demands based on distance functions using Monte Carlo methods. Our approach combines economic theory, econometrics and quadratic approximation. We begin by deriving parameterizations for transformed quadratic functions which are linear in parameters and characterized by either homogeneity or which satisfy the translation property. Homogeneity is typical of Shephard distance functions and expenditure functions, whereas translation is characteristic of benefit/shortage or directional distance functions. The functional forms which satisfy these conditions and include both first and second order terms are the translog and quadratic forms, respectively. We then derive a primal characterization which is homogeneous and parameterized as translog and a dual model which satisfies the translation property and is specified as quadratic. We assess performance by focusing on empirical violations of the regularity conditions. Our analysis corroborates results from earlier Monte Carlo studies on the production side suggesting that the quadratic form more closely approximates the 'true' technology or in our context consumer preferences than the translog.

show abstract

Tricks With Hicks: The Easi Demand System

Cited by 80 publications

References 28 publications

The Distribution of Material Footprints in Germany

The Distribution of Material Footprints in Germany

Beyond the mean: Estimating consumer demand systems in the tails

Estimating demand with distance functions: Parameterization in the primal and dual

Contact Info

Product

Resources

About