Questions tagged [demand-system-estimation]

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What are Quadratic logarithmic preferences? [closed]

What are these Quadratic Logarithmic preferences in choices in consumer behaviour? Tell briefly using some mathematical equations.
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How to test parameter restriction in seemingly unrelated regression using STATA?

Given constrain 1: [w1]ln_p2 = [w2]ln_p1 I estimate an Ideal Demand System using surge command in STATA w1 = a1 + g11 (ln_p1) + g12 (ln_p2) + b1(real_income) w2 = a2 + g21 (ln_p1) + g22 (ln_p2) + b2(...
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37 views

Demand as a function of supply and storage

I'm trying to model a situation where demand is a function of the supply of medical equipments. The equipment costs are already covered, hence price is not taken into consideration. The supply however ...
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1answer
40 views

Concept of Utility in demand systems

I have seen that researchers use different utility function in demand systems estimation such as Stone Geary. What is the role of these utility functions? What are utility function other than stone ...
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1answer
81 views

Approaches in demand analysis

What is the difference between Engel Curve and the system approach of demand analysis?
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In the BLP paper, why interacting consumer characteristic with product characteristic can generate more desirable substitution pattern

Got a question about the famous BLP paper (http://people.stern.nyu.edu/wgreene/Econometrics/BLP.pdf). When there is no interaction between product characteristic and consumer characteristic, the ...
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44 views

Endogeneity in demand estimation using demand systems estimations

Assume I have quantities and prices for J products across M markets in T periods. I want to estimate their elasticities. I construct J regressions of this type: $$\log \left(q_{j m t}\right)=\alpha_{t}...
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51 views

What are the advantages of using demand systems estimation? How is this different from individual demand estimation for product?

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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2answers
398 views

How to estimate if goods are complementary or substitutes when one good is always offered for free?

Usually whether two goods are complementary or substitutes can be measured by estimating cross-price elasticity of demand. If cross-price elasticity of demand is negative the two goods are ...
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29 views

Recovering information on Prices from Expenditure data

this is more of a "Research Based" Question where the answer may be open ended and really am wondering from all the experts here. Feel free to hammer me on this as I'm not 100% confident, my data work ...
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16 views

How to simulate changes in quantity demanded when several prices change?

I am not sure if this is a straightforward question or not. Basically, I have a set of products along with their prices and quantities demanded. I also have own and cross price elasticities for each ...
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1answer
57 views

Demand Curve Price not perfectly elastic

I'm trying to make the argument that our Sales go up when prices for all our Products are 30% off. Which I believe should be our new Regular Price. but our Demand Curve doesn't support this. Should I ...
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Resources on the Rotterdam demand system

I've been doing some self study on the Almost Ideal Demand System, and have been hearing a lot about the Rotterdam demand system developed by Henri Theil. I've been looking for resources on google ...