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Censored demand system estimation

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  • Grace Melo

    (Texas A&M University)

Abstract

We introduce the command quaidsce, a modified version of the estimation command provided by Poi (2008) to estimate the Almost Ideal Demand System proposed by Deaton and Muellbauer (1980) and extended by Banks et al. (1997) to allow for nonlinear demographic effects (through a price deflator for total expenditure) and nonlinear Engel curves (through a quadratic term of total expenditure). The command of Poi (2008) to estimate the Quadratic Almost Ideal Demand System (QUAIDS) is extended to a two-step censoring demand system. Postestimation tools calculate expenditure and price elasticities.

Suggested Citation

  • Grace Melo, 2021. "Censored demand system estimation," 2021 Stata Conference 23, Stata Users Group.
    • Handle: RePEc:boc:scon21:23
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    File URL: http://fmwww.bc.edu/repec/scon2021/US21_Melo.pdf
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