aidsCalc {micEcon}R Documentation

Shares and Quantities of the Almost Ideal Demand System

Description

Given prices, total expenditure and coefficients this function calculates the demanded expenditure shares and quantities based on the Almost Ideal Demand System.

Usage

   aidsCalc( pNames, xtName, data = NULL, px = "TL", lnp = NULL,
      coef = NULL, alpha0 = ifelse( is.null( coef$alpha0 ), 0, coef$alpha0 ) )

Arguments

pNames vector containing the names of the prices.
xtName name of the total expenditure variable.
data data frame containing the variables.
px prices index (see aidsPx)
lnp log of the price index.
coef a list containing the coefficients alpha, beta and gamma.
alpha0 coefficient α_0 in the translog price index.

Value

aidsCalc returns a list with following elements:

shares a data frame containing the calculated expenditure shares
quantities a data frame containing the calculated quantites

Author(s)

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

References

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

See Also

aidsEst, aidsPx

Examples

   data( Blanciforti86 )
   pNames <- c( "pFood1", "pFood2", "pFood3", "pFood4" )
   wNames <- c( "wFood1", "wFood2", "wFood3", "wFood4" )

   ## LA-AIDS
   estResult <- aidsEst( pNames, wNames, "xFood",
      data = Blanciforti86, method = "LA:L" )

   lnp <- aidsPx( "L", pNames, wNames, Blanciforti86 )

   fitted <- aidsCalc( pNames, "xFood", Blanciforti86,
      coef = estResult$coef, lnp = lnp )

   fitted$shares  # equal to estResult$wFitted
   fitted$quant   # equal to estResult$qFitted

   ## AIDS
   estResult <- aidsEst( pNames, wNames, "xFood",
      data = Blanciforti86, method = "MK:L" )

   fitted <- aidsCalc( pNames, "xFood", Blanciforti86,
      coef = estResult$coef )

   fitted$shares  # equal to estResult$wFitted
   fitted$quant   # equal to estResult$qFitted


[Package micEcon version 0.1-3 Index]