The Almost Ideal Demand System: An Application to Micro-Level Data

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Abstract

This study estimates the Almost Ideal Demand System, using household level consumption data, from one village in India. The elasticity estimates obtained in this study are plausible and generally consistent with previous studies. The study also tests for demand homogeneity and the symmetry of compensated cross price effects. The symmetry is almost consistently rejected. The results pertaining to the tests on homogeneity seem to suggest that demand homogeneity may hold if the sample is relatively homogenous in terms of wealth distribution.

Additional Information

Product Type Technical Note
Reference No. ECO0345TEC
Title The Almost Ideal Demand System: An Application to Micro-Level Data
Pages 8
Published on Feb 20, 2002
Authors Ahuja, Vinod;
Area Economics (ECO)
Sector Government

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