The adding up condition of budget share equations is known to imply restrictions for the autoregresive structure of errors. The implications of these restrictions when estimation is in terms of additive normal errors of additive logistic normal errors is clarified, and a byproduct is a...

In this article we advocate more extensive use of the benefit function in specifying price-dependent or inverse demand models. In particular, we demonstrate how duality theory may be used to establish the inter-relationships between the Marshallian (or Hicksian) inverse demands and Luenberger's...

A method is proposed for forecasting composite time series such as the market shares for multiple brands. Its novel feature is that it relies on multi-series adaptations of exponential smoothing combined with the log-ratio transformation for the conversion of proportions onto the real line. It...

This paper integrates seemingly disjoint studies on consumer behavior in micro and macro analyses via the intertemporal two-stage budgeting procedure with durable goods and liquidity constraints. The model accounts for the influences of nondurables consumption, commodity prices, and durables...

A class of demand systems based on simple parametric specification of the indirect utility functions, but allowing for the parsimonious imposition of global regularity, is proposed. Demand systems in this class are completely flexible in rank, i.e., can be potentially specified to acquire as...

The paper presents estimates of price elasticities of demand for twelve disaggregated alcohol beverages in Australia: premium beer, full strength beer, low alcohol beer, and mid strength beer; red bottled wine, white bottled wine, sparkling wine, cask wine, and dark and light ready-to-drink...

In the case of input demand systems based on specification of technology by a Translog cost function, it is common to estimate either a system of share equations alone, or to supplement them by the cost function. By adding up, one of the share equations is excluded. In this paper it is argued...

Consider the following two opinions, both of which can be found in the literature of consumer demand systems: (a) As the real income of a consumer becomes indefinitely large, re-mixing the consumption bundle becomes irrelevant: having chosen the ultimately satisfying budget shares at any given...