IDEAS home Printed from https://ideas.repec.org/p/msh/ebswps/2000-1.html
   My bibliography  Save this paper

Estimating Demand with Varied Levels of Aggregation

Author

Listed:
  • Grose, S.
  • McLaren, K.

Abstract

The response of consumer demand to prices, income, and other characteristics is important for a range of policy issues. Naturally, the level of detail for which consumer behaviour can be estimated depends on the level of disaggregation of the available data. However, it is often the case that the available data is differently aggregated in different time periods, with the information available in later time periods usually being more detailed. The applied researcher is thus faced with choosing between detail, in which case the more highly aggregated data is ignored; or duration, in which case the data must be aggregated up to the "lowest common denominator". This paper develops a specification/estimation technique that exploits the entire information content of a variably-aggregated data set.

Suggested Citation

  • Grose, S. & McLaren, K., 2000. "Estimating Demand with Varied Levels of Aggregation," Monash Econometrics and Business Statistics Working Papers 1/00, Monash University, Department of Econometrics and Business Statistics.
    • Handle: RePEc:msh:ebswps:2000-1
    as

    Download full text from publisher

    File URL: http://www.buseco.monash.edu.au/ebs/pubs/wpapers/2000/wp1-00.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fry, Jane M. & Fry, Tim R. L. & McLaren, Keith R., 1996. "The stochastic specification of demand share equations: Restricting budget shares to the unit simplex," Journal of Econometrics, Elsevier, vol. 73(2), pages 377-385, August.
    2. Unknown, 1986. "Letters," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 1(4), pages 1-9.
    3. de Boer, P. M. C. & Harkema, R., 1986. "Maximum likelihood estimation of sum-constrained linear models with insufficient observations," Economics Letters, Elsevier, vol. 20(4), pages 325-329.
    4. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. van Heeswijk, B J & de Boer, P M C & Harkema, R, 1993. "A Dynamic Specification of an AIDS Import Allocation Model," Empirical Economics, Springer, vol. 18(1), pages 57-73.
    2. Carlo Ciccarelli & Gianni De Fraja & Silvia Tiezzi, 2021. "How hard is it to maximize profit? Evidence from a 19th-century Italian state monopoly," Oxford Economic Papers, Oxford University Press, vol. 73(2), pages 879-902.
    3. Grose, S. & McLaren, K., 2000. "An EM Algorithm for Modelling Variably-Aggregated Demand," Monash Econometrics and Business Statistics Working Papers 2/00, Monash University, Department of Econometrics and Business Statistics.
    4. Kenneth Clements & Wana Yang & Dongling Chen, 2001. "The matrix approach to evaluating demand equations," Applied Economics, Taylor & Francis Journals, vol. 33(8), pages 957-967.
    5. de Boer, P. M. C. & Harkema, R., 1986. "An Algorithm For Maximum Likelihood Estimation Of A New Covariance Matrix Specification For Sum-Constrained Models," Econometric Institute Archives 272357, Erasmus University Rotterdam.
    6. Moschini, Giancarlo, 1998. "The semiflexible almost ideal demand system," European Economic Review, Elsevier, vol. 42(2), pages 349-364, February.
    7. Paris, Quirino & Caracciolo, Francesco, 2012. "Quantity Versus Shares in Estimating Demand Systems," Working Papers 124575, University of California, Davis, Department of Agricultural and Resource Economics.
    8. Moschini, G. & Moro, D., 1993. "A Food demand System for Canada," Papers 1-93, Gouvernement du Canada - Agriculture Canada.
    9. Holt, Matthew T., 2002. "Inverse demand systems and choice of functional form," European Economic Review, Elsevier, vol. 46(1), pages 117-142, January.
    10. Silvia Teizzi, 1999. "External Effects of Agricultural Production in Italy and Environmental Accounting," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 13(4), pages 459-472, June.
    11. Ingvild Almas & Ashild Johnsen, 2018. "The cost of a growth miracle - reassessing price and poverty trends in China," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 30, pages 239-264, October.
    12. Abderraouf Laajimi & Boubaker Dhehibi & José Maria Gil, 2003. "The structure of food demand in Tunisai: a differential system approach," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 66, pages 55-77.
    13. Kesavan, Thulasiram, 1988. "Monte Carlo experiments of market demand theory," ISU General Staff Papers 198801010800009854, Iowa State University, Department of Economics.
    14. Kaplanoglou, Georgia & Newbery, David Michael, 2003. "Indirect Taxation in Greece: Evaluation and Possible Reform," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 10(5), pages 511-533, September.
    15. Gary Wong & Qiao Yu, 2001. "Inverse Demand Systems for Composite Liquid Assets: Evidence from China," School of Economics and Finance Discussion Papers and Working Papers Series 097, School of Economics and Finance, Queensland University of Technology.
    16. Ercolani, Marco, 2000. "The price augmented risk premium, theory and application," Economics Discussion Papers 8830, University of Essex, Department of Economics.
    17. Ou Yang & Peter Sivey & Andrea M. de Silva & Anthony Scott, 2020. "Parents' Demand for Sugar Sweetened Beverages for Their Pre‐School Children: Evidence from a Stated‐Preference Experiment," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(2), pages 480-504, March.
    18. Steven D. Silver, 2016. "A QUAIDS Model of Need-Based Structure in U.S. Personal Consumption 2006–2012," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 44(3), pages 303-323, September.
    19. Paris, Quirino & Caracciolo, Francesco, 2014. "Testing the Adding Up Condition in Demand Systems," Working Papers 171748, University of California, Davis, Department of Agricultural and Resource Economics.
    20. Haley, Stephen L., 1998. "Modeling The U.S. Sweetener Sector: An Application To The Analysis Of Policy Reform," Working Papers 14610, International Agricultural Trade Research Consortium.

    More about this item

    Keywords

    Singular demand systems; Linear expenditure system; Almost ideal demand system; Missing data.;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:msh:ebswps:2000-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Professor Xibin Zhang (email available below). General contact details of provider: https://edirc.repec.org/data/dxmonau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.