Estimating an ECM-AIDS Model for Urban-Area's Household Expenditure: The Case of Iran
Estimating an ECM-AIDS Model for Urban-Area's Household Expenditure: The Case of Iran
Author(s): Ramin Bashir KhodaparastiSubject(s): Economy
Published by: Alma Mater & Universitatea »Babes Bolyai« Cluj - Facultatea de St. Economice si Gestiunea Afacerilor
Keywords: ECM-AIDS; household expenditure; ISUR; co integration
Summary/Abstract: This paper represents static and dynamic specification of the Almost Ideal Demand System (AIDS) based on co integration techniques and error correction models. Based on Iranian urban-area’s household expenditure data over the period 1984-2004, it was found that the proposed formulation for dynamic specification performs well on both theoretical and statistical grounds as the theoretical properties of homogeneity and symmetry are supported by the data. Moreover, with computing short- run and long-run elasticites, it was fund food; clothing and housing are complements, regardless of time horizon
Journal: Revista de Studii şi Cercetări Economice Virgil Madgearu
- Issue Year: 2010
- Issue No: 02
- Page Range: 129-138
- Page Count: 10
- Language: English