aidsMono | R Documentation |
aidsMono
checks whether the expenditure function
of an estimated Almost Ideal Demand System (AIDS)
is monotonic increasing in prices,
which implies that all demanded quantities and expenditure shares
are non-negative.
aidsMono( priceNames, totExpName, coef, data, priceIndex = "TL", basePrices = NULL, baseShares = NULL ) ## S3 method for class 'aidsMono' print( x, header = TRUE, ... )
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 |
basePrices |
a vector specifying the base prices for the Paasche, Laspeyres, and Tornqvist price index. |
baseShares |
a vector specifying the base expenditure shares for the Laspeyres, simplified Laspeyres, and Tornqvist index. |
x |
an object of class |
header |
logical. Print a header? |
... |
currently unused. |
Internally, aidsMono
passes its arguments to aidsCalc
and then checks for each observation, wether all expenditure shares
are non-negative.
If argument priceIndex
specifies a price index of the LA-AIDS,
'fitted' values are used for current and lagged expenditure shares
in these price indices
(see aidsCalc
).
However, if argument priceIndex
is a numeric vector
containing the log values of a price index
(e.g.\ the price index used in the estimation),
this price index is used for the calculations.
aidsMono
returns a list of class aidsMono
that contains following elements:
monotony |
a logical vector indicating whether the monotony condition is fulfilled at each observation. |
nValidObs |
number of (valid) observation at which monotonicity could be checked. |
nMonoObs |
number of observation at which the monotonicity codition is fulfilled. |
monoPercent |
percent of observations where the monotony condition is fulfilled. |
priceIndex |
a chacter string indicating the price index
specified by argument |
Arne Henningsen
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.
aidsEst
, aidsCalc
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" ) ## AIDS estResult <- aidsEst( priceNames, shareNames, "xFood", data = Blanciforti86, method = "IL" ) aidsMono( priceNames, "xFood", coef = coef( estResult ), data = Blanciforti86 ) ## LA-AIDS with Tornqvist price index estResultLaT <- aidsEst( priceNames, shareNames, "xFood", data = Blanciforti86, priceIndex = "T" ) # with fitted expenditure shares in the price index aidsMono( priceNames, "xFood", coef = coef( estResultLaT ), data = Blanciforti86, priceIndex = "T", basePrices = estResultLaT$basePrices, baseShares = estResultLaT$baseShares ) # with observed expenditure shares in the price index aidsMono( priceNames, "xFood", coef = coef( estResultLaT ), data = Blanciforti86, priceIndex = estResultLaT$lnp )
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