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Easy demand-system estimation with quaids

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  • Brian P. Poi

    (StataCorp)

Abstract

Previously, to fit an almost-ideal demand system in Stata, one would have to use the nlsur command and write a function evaluator program as described in [R] nlsur and Poi (2008, Stata Journal 8: 554–556). In this article, I introduce the command quaids, which obviates the need for any programming by the user. The command fits Deaton and Muellbauer's (1980b, American Economic Review 70: 312–326) original almost-ideal demand-system model as well as Banks, Blundell, and Lewbel's (1997, Review of Economics and Statistics 79: 527–539) quadratic variant. Demographic variables can also be included in the model. Postestimation tools calculate expenditure and price elasticities.

Suggested Citation

  • Brian P. Poi, 2012. "Easy demand-system estimation with quaids," Stata Journal, StataCorp LP, vol. 12(3), pages 433-446, September.
    • Handle: RePEc:tsj:stataj:v:12:y:2012:i:3:p:433-446
    Note: to access software from within Stata, net describe http://www.stata-journal.com/software/sj12-3/st0268/
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    References listed on IDEAS

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    1. Paul Blacklow & Aaron Nicholas & Ranjan Ray, 2010. "Demographic Demand Systems With Application To Equivalence Scales Estimation And Inequality Analysis: The Australian Evidence," Australian Economic Papers, Wiley Blackwell, vol. 49(3), pages 161-179, September.
    2. Pollak, Robert A & Wales, Terence J, 1981. "Demographic Variables in Demand Analysis," Econometrica, Econometric Society, vol. 49(6), pages 1533-1551, November.
    3. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
    4. Ray, Ranjan, 1983. "Measuring the costs of children : An alternative approach," Journal of Public Economics, Elsevier, vol. 22(1), pages 89-102, October.
    5. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
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    Keywords

    quaids; almost-ideal demand system;

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