aidsConsist: Check Consistency of the AIDS

In micEconAids: Demand Analysis with the Almost Ideal Demand System (AIDS)

Check Consistency of the AIDS

Description

Check whether the specification of the AIDS is consistent with microeconomic demand theory (i.e. utility maximisation).

Usage

aidsConsist( priceNames, totExpName, coef, data,
   priceIndex = "TL", basePrices = NULL, baseShares = NULL,
   shareNames = NULL )

## S3 method for class 'aidsConsist'
print( x, ... )

## S3 method for class 'aidsEst'
checkConsist( object, observedShares = FALSE, ... )

Arguments

priceNames	a vector of strings containing the names of the prices.
totExpName	a string containing the variable name of total expenditure.
coef	a list containing the coefficients alpha, beta, gamma, and (only for the translog price index) alpha0.
data	a data frame containing the data.
priceIndex	a character string specifying the price index (see aidsPx) or a numeric vector providing the log values of the price index (passed to aidsMono.
basePrices	a vector specifying the base prices for the Paasche, Laspeyres, and Tornqvist price index (passed to aidsMono.
baseShares	a vector specifying the base expenditure shares for the Laspeyres, simplified Laspeyres, and Tornqvist index (passed to aidsMono.
shareNames	a vector of strings containing the names of the expenditure shares (passed to aidsConcav.
x	an object of class aidsConsist.
object	an object of class aidsEst.
observedShares	logical. Using observed shares? (see details).
...	currently not used.

Details

The checkConsist method for objects of class aidsEst extracts all relevant elements from an object returned by aidsEst and passes them as arguments to aidsConsist. The optional argument observedShares determines whether fitted (default) or observed expenditure shares are used in the price index of the LA-AIDS to check monotonicity and in the calculation of the subsitution matrix to check concavity.

Value

aidsConsist and the checkConsist method return a list of class aidsConsist that contains following elements:

addingUp	logical. Is the addinp-up condition fulfilled?
homogeneity	logical. Is the homogeneity condition fulfilled?
symmetry	logical. Is the symmetry condition fulfilled?
mono	an object returned by aidsMono.
concav	an object returned by aidsMono (only if the symmetry condition is fulfilled and the translog price index is used, i.e. argument priceIndex is "TL".

Author(s)

Arne Henningsen

References

Deaton, A.S. and J. Muellbauer (1980a) An Almost Ideal Demand System. American Economic Review, 70, p. 312-326.

Deaton, A.S. and J. Muellbauer (1980b) Economics and Consumer Behavior, Cambridge University Press, Cambridge.

See Also

aidsEst

Examples

   data( Blanciforti86 )
   # Data on food consumption are available only for the first 32 years
   Blanciforti86 <- Blanciforti86[ 1:32, ]

   priceNames <- c( "pFood1", "pFood2", "pFood3", "pFood4" )
   shareNames <- c( "wFood1", "wFood2", "wFood3", "wFood4" )

   estResult <- aidsEst( priceNames, shareNames, "xFood",
      data = Blanciforti86, method = "IL" )
   aidsConsist( priceNames, "xFood", data = Blanciforti86,
      coef = estResult$coef )

   # the same can be obtained in an easier way
   checkConsist( estResult )

micEconAids documentation built on May 20, 2022, 5:05 p.m.