aidsEla {micEcon}R Documentation

Elasticities of the AIDS model

Description

Calculates the demand elasticities of an AIDS model.

Usage

   aidsEla( coef, W, P = NULL, formula = "AIDS",
      qNames = NULL, pNames = NULL )

Arguments

coef a list containing the coefficients alpha, beta and gamma.
W a vector of the shares at which the elasticities should be calculated.
P a vector of the prices at which the elasticities should be calculated.
formula the elsticity formulas to be used (see details).
qNames an optional vector of strings containing the names of the quantities to label elasticities.
pNames an optional vector of strings containing the names of the prices to label elasticities.

Details

At the moment only the elasticity formulas of the orginal AIDS ('AIDS'), the formula of Chalfant (1987) ('Ch') and the formula of Eales and Unnevehr (1988) ('EU') are implemented.

Value

a list containing following elements:

formula the elasticity formula used to calculate these elasticities
exp vector of expenditure elasticities
marshall matrix of Marshallian (uncompensated) price elasticities
hicks matrix of Hicksian (compensated) price elasticities

Author(s)

Arne Henningsen ahenningsen@agric-econ.uni-kiel.de

References

Chalfant, J.A. (1987) A Globally Flexible, Almost Ideal Demand System. Journal of Business and Economic Statistics, 5, p. 233-242.

Deaton, A.S. and J. Muellbauer (1980) An Almost Ideal Demand System. American Economic Review, 70, p. 312-326.

Eales J.S. and L.J. Unnevehr (1988) Demand for beef and chicken products: separability and structural change. American Journal of Agricultural Economics, 70, p. 521-532.

See Also

aidsEst

Examples

   data( Blanciforti86 )
   estResult <- aidsEst( c( "pFood1", "pFood2", "pFood3", "pFood4" ),
      c( "wFood1", "wFood2", "wFood3", "wFood4" ), "xFood",
      data = Blanciforti86, method = "LA:L" )
   wMeans <- colMeans( Blanciforti86[ , c( "wFood1", "wFood2",
      "wFood3", "wFood4" ) ] )
   aidsEla( estResult$coef, wMeans, formula = "Ch" )

[Package micEcon version 0.1-7 Index]