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A Linear Inverse Demand System

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  • Moschini, Giancarlo
  • Vissa, Anuradha

Abstract

We present an inverse demand system that can be estimated in a linear form. The model is derived from a specification of the distance function which is parametrically similar to the cost function underlying the Almost Ideal Demand System. Simulation results suggest that this linear inverse demand system has good approximation properties.

Suggested Citation

  • Moschini, Giancarlo & Vissa, Anuradha, 1992. "A Linear Inverse Demand System," ISU General Staff Papers 199212010800001159, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:199212010800001159
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