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1992•RePEc: Research Papers in EconomicsOpen access

A LINEAR INVERSE DEMAND SYSTEM

GianCarlo Moschini, A. Vissa, Moschini, GianCarlo, Vissa, Anuradha

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Abstract

We present an inverse demand that can be estimated in a linear form. The model is derived from a specification of the distance function which is parametrically similar to the cost function underlying the Almost Ideal Demand System. Simulation results suggest that this linear inverse demand system has good approximation properties.

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We present an inverse demand that can be estimated in a linear form. The model is derived from a specification of the distance function which is parametrically similar to the cost function underlying the Almost Ideal Demand System. Simulation results suggest that this linear inverse demand system has good approximation properties.

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Available abstract

We present an inverse demand that can be estimated in a linear form. The model is derived from a specification of the distance function which is parametrically similar to the cost function underlying the Almost Ideal Demand System. Simulation results suggest that this linear inverse demand system has good approximation properties.

Key concepts: Inverse demand function, Almost ideal demand system, Inverse, Demand curve, Function (biology), Ideal (ethics), Inverse function, Inverse problem

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