WHEN IS EXPENDITURE "EXOGENOUS" IN SEPARABLE DEMAND MODELS?

摘要: The separability hypothesis and expenditure as an exogenous variable in a system of conditional demands are analyzed. Expenditure cannot be weakly specified functions the prices separable goods total on those goods. Furthermore, is uncorrelated with residuals demand equations only when severe restrictions satisfied. Therefore, will seldom strictly exogenous. Econometric methods presented for consistent efficient estimation unknown parameters correlated it not. In applied analysis, incomplete information rule not exception. We always concerned subset number commodities that purchased by consumers. Data limitations, finite computer memory, increased complexity time required numerical computations large models make necessary to