A dynamic differential demand system: an application of translation

The differential demand system or Rotterdam model is extended to include lagged consumption through translation parameters, providing an alternative to simply adding constant terms to the model to allow for trends in consumption and changes in tastes. Application of the model to four broadly defined groups of goods indicates significant lag effects, resulting in differences in short-run and long-run income and price responses.


Issue Date:
1991
Publication Type:
Report
PURL Identifier:
http://purl.umn.edu/52716
Total Pages:
20
Series Statement:
Research Papers
1991-3




 Record created 2017-04-01, last modified 2017-08-25

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