ESTIMATION OF THE LINEAR EXPENDITURE SYSTEM

摘要: In this paper we estimate a complete system of demand equations making full use the restrictions implied by economic theory. Our theoretical model is based on Klein-Rubin linear expenditure which was first estimated Stone. We place primary emphasis maximum likelihood estimates obtained using annual time series observations prices and per capita consumption for U.S. economy in period 1948-1965. The plan as follows: Section 1 begins with discussion problems involved systematic theory to functions; followed brief description specification its dynamic stochastic structure. 2 describe three methods estimating system, including procedure believe most appropriate. report our results 3 conclusions 4. A. INTRODUCTION pure consumer behavior concerned individual functions. An individual's preferences are assumed be representable well behaved utility function, U(x1, .. . , x"), where xi denotes rate ith good. He supposed maximize U subject budget constraint n (1) E PkXk =I k =