Chapter 3 The Differential Approach to Demand Analysis and the Rotterdam Model
Quantifying Consumer Preferences
ISBN: 978-1-84855-312-5, eISBN: 978-1-84855-313-2
ISSN: 0573-8555
Publication date: 29 May 2009
Abstract
This chapter presents the differential approach to applied demand analysis. The demand systems of this approach are general, having coefficients that are not necessarily constant. We consider the Rotterdam parameterization of differential demand systems and derive the absolute and relative price versions of the Rotterdam model, due to Theil (1965) and Barten (1966). We address estimation issues and point out that, unlike most parametric and semi-nonparametric demand systems, the Rotterdam model is econometrically regular.
Keywords
Citation
Barnett, W.A. and Serletis, A. (2009), "Chapter 3 The Differential Approach to Demand Analysis and the Rotterdam Model", Slottje, D.J. (Ed.) Quantifying Consumer Preferences (Contributions to Economic Analysis, Vol. 288), Emerald Group Publishing Limited, Bingley, pp. 61-81. https://doi.org/10.1108/S0573-8555(2009)0000288006
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