aidsBestA0 {micEcon} | R Documentation |
Search for the intercept of the translog price index (α_0) that gives the best fit to the model, i.e. the value that leads to the smallest determinant of the residual covariance matrix (see Michalek and Keyzer, 1992).
aidsBestA0( pNames, wNames, xtName, data = NULL, ivNames = NULL, method = "MK:L", a0min = -50, a0max = 50, stoprange = 3, stopiter = 10, verbose = FALSE, ... )
pNames |
a vector of strings containing the names of prices. |
wNames |
a vector of strings containing the names of expenditure shares. |
xtName |
a name of the total expenditure variable. |
data |
a data frame containing the data. |
ivNames |
a vector of strings containing the names of instrumental variables. |
method |
the method to estimate the aids (see aidsEst ). |
a0min |
lower limit of the range for searching for α_0. |
a0max |
upper limit of the range for searching for α_0. |
stoprange |
stop searching when the search interval is smaller than
or equal to stoprange . |
stopiter |
maximal number of iterations. |
verbose |
print each determinant of the residual covariance matrix immediately after its calculation. |
... |
argunents passed to aidsEst . |
Since the call of aidsEst
takes some time,
the search algorithm is constructed to minimize the
calls of the function aidsEst
.
a list containing following objects:
alpha0 |
α_0 that gives the best fit. |
allValues |
all α_0 tested and the corresponding determinants of the residual covariance matrix. |
iter |
number of iterations. |
Arne Henningsen ahenningsen@agric-econ.uni-kiel.de
Deaton, A.S. and J. Muellbauer (1980) An Almost Ideal Demand System. American Economic Review, 70, p. 312-326.
Michalek, J. and M. A. Keyzer (1992) Estimation of a two-stage LES-AIDS consumer demand system for eight EC countries. European Review of Agricultural Economics, 19 (2), p. 137-163.
data( Blanciforti86 ) bestA0 <- aidsBestA0( c( "pFood1", "pFood2", "pFood3", "pFood4" ), c( "wFood1", "wFood2", "wFood3", "wFood4" ), "xFood", data = Blanciforti86, method = "MK:L" ) # may take some time bestA0$alpha0 plot( bestA0$allValues ) # this should be convex