# Questions tagged [demand-system-estimation]

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### 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 ...
277 views

### Ensuring positive shares in homothetic demand system estimation

I am performing a demand system estimation, and a counter-factual exercise which involves estimating demands at prices quite far from the observed ones. I know a priori that preferences are homothetic,...
257 views

### Reasons for why slutsky matrix may be non symmetric

In demand system estimation, theoretically we require this matrix to be symmetric. This unfortunately is not the case most of the time. What are some reasons for why symmetry of the slutsky matrix may ...
89 views

### How to read/estimate Demand System on data

I have difficulties understanding the concept of Almost Ideal Demand System or, most probably, I have a problem of how to perform microeconomic estimates from data, in general... So my data look like ...
31 views

### Interpretation of more than one cross price elasticity of demand

I am writing an empirical paper and use cross sectional data to estimate elasticities using an "almost ideal demand system" by Deaton and Muellbauer (1980) using Stata. My question concerns ...
106 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 ...
1 vote
36 views

### Checking negativity condition in demand system model

Let's assume you want to estimate a demand system model, e.g. the AIDS, based on observational data. Then you usually test first whether the homogeneity and symmetry condition hold in order to check ...
92 views

### Relative prices in demand system estimation

Context/ Setup: Microeconometrics offers many tools to study features of the demand for different goods/ groups of goods, such as the well known Almost Ideal Demand System (AIDs). The AIDs model ...
1 vote
55 views

### Data-driven vs. theory-driven demand system estimation

Context: When one wants to study consumer demand based on observational data (e.g. household survey data), imposing theoretical restrictions on the coefficients of the demand model seems to be a good ...
1 vote
71 views

### Is it possible to get a demand function as function of income and utility from this log linear indirect utility?

I have this indirect utility function: $$v=-c\frac{p^{(-β+1)}}{(-\beta+1)}+\frac{y^{(-\gamma+1)}}{(-\gamma+1)}$$ with constraint Y = c + pq I have posted before about getting the utility function from ...
71 views

### Reference on nonparametric econometrics

I am looking for a fairly recent treatment of non parametric econometric methods. Something which can help me make sense of, for instance Hausman Newey Econometrica 2016 I did find some references on ...
69 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 ...
69 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 ...
121 views

### Approaches in demand analysis

What is the difference between Engel Curve and the system approach of demand analysis?
99 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?
55 views

### 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 ...
60 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}...
36 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 ...
1 vote