Estimation of demand systems based on elasticities of substitution

Arbeitspapier

This paper develops a model for demand-system estimations, whose coefficients are own-price Marshallian elasticities and elasticities of substitution between goods. The model satisfies the homogeneity, symmetry and, eventually, adding-up restrictions implied by consumer theory, and is primarily useful for the estimation of the demands of several goods of the same industry or group of products. The characteristics of the model are compared to other existing alternatives (logarithmic, translog, AIDS and QUAIDS demand systems). The model is finally applied to estimate the demands for several carbonated soft drinks in Argentina, and its results are presented, together with the ones obtained with the other estimation methods.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Serie Documentos de Trabajo ; No. 322

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models; Multiple Variables: General ; Model Construction and Estimation ; Consumer Economics: Empirical Analysis ; Food; Beverages; Cosmetics; Tobacco; Wine and Spirits
• Subject: Demand Systems ; Elasticity of Substitution ; Simultaneous Equations ; Carbonated Soft Drinks ; Nachfragesystem ; Substitutionselastizität ; Theorie ; Erfrischungsgetränk ; Argentinien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Coloma, Germán
• Event: Veröffentlichung
• (who): Universidad del Centro de Estudios Macroeconómicos de Argentina (UCEMA)
• (where): Buenos Aires
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/84261
• Last update: 10.03.2025, 11:44 AM CET