aidsTestConsist {micEcon}R Documentation

Consistency Test of the AIDS

Description

Test whether the specification of the AIDS is consistent with microeconomic demand theory (i.e. utility maximisation).

Usage

   aidsTestConsist( pNames, wNames, xtName, data, coef = NULL,
      alpha0 = ifelse( is.null( coef$alpha0 ), 0, coef$alpha0 ) )

Arguments

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.

Value

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 ).

Author(s)

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

References

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.

See Also

aidsEst, aidsEla

Examples

   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!

[Package micEcon version 0.1-7 Index]