I don't understand how is demand systems estimation is different from simple demand equation estimation. What's the best resource for getting a history line of demand systems?

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    $\begingroup$ The seminal work is probably Deaton and Muellbauer. Its from 1980, so a bit dated, but still a great work if you want a good introduction to demand and demand system estimation. $\endgroup$
    – tdm
    Apr 30, 2021 at 17:38

1 Answer 1


One advantage of considering demand systems is that more data is available for identifying the degree of income effects and substition between commodities. A second advantage is the possibility to impose and test microeconomic restrictions (which are between equations). An introduction to the estimation of demand systems with an historical perspective is provided by:
Berndt, E. R., 1991, The Practice of Econometrics: classic and contemporary, Addison Wesley.
More recent treatments are available in most econometric textbooks.


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