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By Ronald Bewley

Contains essays on shopper call for and econometrics written in honour of Professor Henri Theil. The essays document the result of present pioneering study paintings and canopy various subject matters together with inequality exams, blending forecasts and dynamic panel facts models.

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Extra resources for Contributions to Consumer Demand and Econometrics: Essays in Honour of Henri Theil

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G. (1967) A Graduate Course in Probability (New York: Academic Press). 3 The Estimation of Mixed Demand Systems Anton P. 1 INTRODUCfION In applied demand analysis the quantities demanded are usually explained as a function of prices and total expenditure. Complete systems of such demand functions describe in this way aU (groups of) commodities in the budget of the consumer. They reflect the basic assumptions about utility maximizing behaviour of the consumer by the parametrization of the functions.

There is then no problem of inconsistency of estimation due to 'simultaneity'. In the case of the regular and inverse system it is fairly simple to select a parametrization which reflects the constraints implied by the structural formulation in a way which is easy to take into account when estimating the system. This property does not hold to the same extent for mixed systems. Another approach is possible: estimate either a regular or an inverse demand system taking into account the endogenous nature of some of the right-hand side variables.

Imports of fresh vegetables are relatively unimportant. Canned or otherwise preserved vegetables are easy to store without losing their quality. The difference between demand and supply can be bridged by changes in inventories rather than by price adjustments. Of course, canned and fresh vegetables are mutual substitutes. The price formation of fresh vegetables takes into account the prices set for canned ones. The seasonal variations in the supply of fresh vegetables will be partly compensated by opposite variations in the demand for canned vegetables.

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