Estimation of a Composite Food Demand System for the United States |
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| Authors: | Kuo S. Huang Richard C. Haidacher |
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| Affiliation: | National Economics Division, Economic Research Service, U.S. Department of Agriculture , Washington , D.C. , 20250 |
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| Abstract: | This study develops statistical procedures for computing the parameters of a complete demand system. A constrained maximum likelihood method has been applied, and parametric restrictions derived from classical demand theory are introduced by a substitution approach. The procedures are then applied to U.S. data for estimating a composite food demand system covering 12 food categories and one nonfood sector. |
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| Keywords: | Complete demand system Constrained maximum likelihood estimation Engel aggregation Homogeneity Symmetry |
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