We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Consumer demand systems and aggregate consumption in the USA: an application of the extended linear expenditure systems.
- Authors
Lluch, C.; Williams, R.
- Abstract
Consumer demand systems and aggregate consumption in the USA: an application of the extended linear expenditure system. Two complete demand systems are fitted to USA data for the period 1930-72, using ML methods. The well known linear expenditure system (LES) yields y-estimates that are very sensitive to error specification. The extended linear expenditure system (ELSE), with disposable income and prices as explanatory variables, yields more stable y-estimates. Both sets of estimates roughly coincide at a maximum of the likelihood function for each model. In addition, ELSE equations add up to a 'Keynesian' consumption function. An estimate of the MPC is available and the saving effect of relative price changes can be measured.
- Subjects
UNITED States; CONSUMPTION (Economics); LINEAR systems; INCOME; PRICES
- Publication
Canadian Journal of Economics, 1975, Vol 8, Issue 1, p49
- ISSN
0008-4085
- Publication type
Article
- DOI
10.2307/134064