[R] linear expenditure model
Marie Vandresse
vm at plan.be
Mon Oct 13 09:14:23 CEST 2008
I have already used aidsEst() function in the micEcon package for the
estimation of elasticities.
But with the LES, I plan to estimate the minimal consumption
level...which is not possible with the AIDS model, do I?
Arne Henningsen wrote:
> Hi Marie!
>
> On Friday 10 October 2008 12:40:23, Marie Vandresse wrote:
>
>> I would like to estimate a linear expendire with Systemfit package.
>> (method: "SUR")
>>
>
> If I remember correctly, the "linear expenditure system" (LES) is linear in
> income but non-linear in the parameters. Hence, you have to estimate a system
> of non-linear equations. Unfortunately, the nlsystemfit() function in the
> systemfit package that estimates systems of non-linear equations is still
> under development and has convergence problems rather often. Since the
> systemfit() function in the systemfit package that estimates systems of
> linear equations is very reliable [1], I suggest that you choose a demand
> system that is linear in parameters (e.g. the Almost Ideal Demand System,
> AIDS)
>
> [1] http://www.jstatsoft.org/v23/i04
>
>
>> As someone could show me how to define the equations?
>>
>
> If you use the aidsEst() function in the micEcon package [2], you don't have
> to specify the equations of the Almost Ideal Demand System yourself.
>
> [2] http://www.micEcon.org
>
> Best wishes,
> Arne
>
>
--
Marie Vandresse
Bureau fédéral du Plan
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Bureau 212
Tél. +32.(0)2.507.73.62
Tél. +32.(0)2.507.73.73
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