Description Usage Arguments Details Value Author(s) References See Also Examples
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.
1 2 3 4 5 |
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.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 | 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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