A LINEAR INVERSE DEMAND SYSTEM

GianCarlo Moschini · A. Vissa

65 citations0/0 files storedRePEc: Research Papers in Economics

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Economics of Agriculture and Food Markets Consumer Market Behavior and Pricing Economic and Environmental Valuation

Abstract

We present an inverse demand 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.

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1980An Almost Ideal Demand System 1975Transcendental Logarithmic Utility Functions 1990Elasticities in AIDS Models 1978Duality, Separability, and Functional Structure: Theory and Economic Applications 1989Modeling the Pattern of Structural Change in U.S. Meat Demand 1989Price formation of fish 1979The Distance Function in Consumer Behaviour with Applications to Index Numbers and Optimal Taxation 1994The inverse almost ideal demand system

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