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An Intertemporally Quasi Separable Demand System

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  • Rossi, Nicola

Abstract

On the assumption that the natural root of dynamics lies in the intertemporal dimension of the optimization process and that an operational and meaningful solution has to be found by appropriately placing restrictions on preferences, this paper develops and tests on U.K. 1952-81 data a dynamic demand system exploiting W. M. Gorman's concept of quasi separability. Comparison with a static (intertempora lly weakly separable) alternative provides further evidence for the i dea that dynamic modeling can overcome the usual rejection of theoret ical constraints in demand analysis. Copyright 1987 by MIT Press.

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  • Rossi, Nicola, 1987. "An Intertemporally Quasi Separable Demand System," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 449-457, August.
    • Handle: RePEc:tpr:restat:v:69:y:1987:i:3:p:449-57
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    Cited by:

    1. Perrels, A., 1988. "The allocation of time for housework activities," Serie Research Memoranda 0047, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    2. L. Fanelli & M. Mazzocchi, 2004. "Back to the future? Habits and rational addiction in UK tobacco and alcohol demand," Quaderni di Dipartimento 0, Department of Statistics, University of Bologna.

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