A Simple Nested Test of AIDS

The MPIGLOG specification of an indirect utility function gives rise to Cooper and McLaren's (1992) Modified AIDS (MAIDS) specification, which nests AIDS. Following the 'combined' approach outlined by Fry, Fry and McLaren (1993), we transform our deterministic equations to logratio form for estimation. This procedure not only restricts the shares implied by the model to the unit simplex, but also provides a transparent representation of the restriction implied by AIDS. We estimate MAIDS (with and without the AIDS restriction imposed) using the 'combined' approach and proceed to test the AIDS restriction.


Issue Date:
Sep 01 1993
Publication Type:
Working or Discussion Paper
Record Identifier:
http://ageconsearch.umn.edu/record/267417
Language:
English
Total Pages:
14
JEL Codes:
D12; C51; C30
Series Statement:
Working Paper No. 11/93




 Record created 2018-01-30, last modified 2018-01-31

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