Applied Econometrics with SAS

Chapter 3

Empirical Approaches to Demand Analysis

Contents

3.1 Overview

3.2 Double Logarithmic Demand Functions

3.2.1 The Double Log Form

3.2.2 Empirical Analysis

3.3 Rotterdam Model

3.3.1 Absolute Price and Relative Price Rotterdam Formulations

3.3.2 Empirical Analysis

3.4 Almost Ideal Demand System

3.4.1 Full and Linear Approximate AIDS Models

3.4.2 Empirical Analysis

3.5 Demand for Differentiated Products

3.5.1 Discrete Choice

3.5.2 Logit Models

3.5.3 Empirical Analysis

3.6 Conclusion

3.1 Overview

In the previous chapter, we stated the preference axioms that are sufficient to generate the theory of demand. Some key results of the theory were presented; you will want to take these results into account when conducting empirical studies of demand. ...