Consumer Allocation Models : Choice of Functional Firm

摘要: The functional form of consumer allocation models should be able to satisfy theoretical properties derived from the theory demand. paper sketches four approaches that meet this condition. Of course, also empirical performance matters. Next naive goodness-of-fit comparison, non-nested hypothesis testing can employed. latter technique is applied a comparison versions differential demand systems: Rotterdam system, version Almost Ideal Demand (AID) CBS system and NBR system. These systems are artificially nested in more general model using scalar weights contrast Barten McAleer (1991) who use matrix for purpose. Annual data over period 1921–1981 Netherlands major groups expenditure have been used application. dominates others.