aidsTestConsist {micEcon} | R Documentation |
Test whether the specification of the AIDS is consistent with microeconomic demand theory (i.e. utility maximisation).
aidsTestConsist( pNames, wNames, xtName, data, coef = NULL, alpha0 = ifelse( is.null( coef$alpha0 ), 0, coef$alpha0 )
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. |
coef |
a list containing the coefficients alpha, beta and gamma. |
alpha0 |
coefficient α_0 in the translog price index. |
a list containing following elements:
monotony |
a logical vector indicating whether the monotony condition is fulfilled at each observation. |
mPercent |
percent of observations where the monotony condition is fulfilled. |
concavity |
a logical vector indicating whether the concavity condition is fulfilled at each observation. |
cPercent |
percent of observations where the concavity condition is fulfilled. |
cMatrices |
a list of the 'C' matrices for each observation to check for concavity (see Deaton and Muellbauer, 1980b, p.76 ). |
Arne Henningsen ahenningsen@agric-econ.uni-kiel.de
Deaton, A.S. and J. Muellbauer (1980a) An Almost Ideal Demand System. American Economic Review, 70, p. 312-326.
Deaton, A.S. and J. Muellbauer (1980b) Economics and Consumer Behavior, Cambridge University Press, Cambridge.
data( Blanciforti86 ) pNames <- c( "pFood1", "pFood2", "pFood3", "pFood4" ) wNames <- c( "wFood1", "wFood2", "wFood3", "wFood4" ) estResult <- aidsEst( pNames, wNames, "xFood", data = Blanciforti86, method = "MK:L" ) tc <- aidsTestConsist( pNames, wNames, "xFood", Blanciforti86, coef = estResult$coef ) tc$mPercent # great! tc$cPercent # Oh, that is bad!