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Econometrics of Demand Systems
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488 b
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This book presents an applied econometric analysis of the demand for food in the Nordic countries. A system of demand equations, based on the neoclassical theory of consumer demand, is analyzed using modern econometric techniques for estimation and evaluation. The models investigated are mainly dynamic versions of the Almost Ideal Demand System, which was first proposed in static form by Deaton and Muellbauer. The authors have incorporated recent econometric advances in misspecification testing, allowing for a thorough investigation of the models. The authors construct well-specified demand systems that explain the historical development of the consumption of different food items in the Nordic countries. Equal attention is paid to the presentation of specific results concerning elasticities, tests, etc., and to the description of the methodology used. §The agricultural economist will find the results and the methodology new and interesting. The applied econometrician will see how a thorough and exhaustive analysis of a data set can be performed and the theoretical econometrician will see how techniques are being applied.
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