Premium
An application of cointegration theory in the estimation of the Almost Ideal Demand system for food consumption in Bulgaria
Author(s) -
Balcombe K.G.,
Davis J.R.
Publication year - 1996
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.1996.tb00419.x
Subject(s) - almost ideal demand system , casual , cointegration , ideal (ethics) , economics , consumption (sociology) , estimation , econometrics , consumer demand , microeconomics , demand management , macroeconomics , sociology , social science , management , philosophy , materials science , epistemology , composite material
The Almost Ideal Demand system is applied to consumption in Bulgaria. It is argued that the conventional estimation of the Almost Ideal model should be done within the framework of contemporary time series methodology. In this paper, the canonical comtegrating regression procedure of Park is applied. It is argued that the results of the Almost Ideal Demand system that are presented are consistent with both theory and ‘casual’ observation of consumer behaviour in Bulgaria.