aidsMono {micEconAids} | R Documentation |
aidsMono
checks whether the expenditure function
of an estimated Almost Ideal Demand System (AIDS)
is monotonic increasing in prices,
which implies that all demanded quantities and expenditure shares
are non-negative.
aidsMono( priceNames, totExpName, coef, data,
priceIndex = "TL", basePrices = NULL, baseShares = NULL )
## S3 method for class 'aidsMono'
print( x, header = TRUE, ... )
priceNames |
a vector of strings containing the names of the prices. |
totExpName |
a string containing the variable name of total expenditure. |
coef |
a list containing the coefficients alpha, beta, gamma, and (only for the translog price index) alpha0. |
data |
a data frame containing the data. |
priceIndex |
a character string specifying the price index
(see |
basePrices |
a vector specifying the base prices for the Paasche, Laspeyres, and Tornqvist price index. |
baseShares |
a vector specifying the base expenditure shares for the Laspeyres, simplified Laspeyres, and Tornqvist index. |
x |
an object of class |
header |
logical. Print a header? |
... |
currently unused. |
Internally, aidsMono
passes its arguments to aidsCalc
and then checks for each observation, wether all expenditure shares
are non-negative.
If argument priceIndex
specifies a price index of the LA-AIDS,
'fitted' values are used for current and lagged expenditure shares
in these price indices
(see aidsCalc
).
However, if argument priceIndex
is a numeric vector
containing the log values of a price index
(e.g.\ the price index used in the estimation),
this price index is used for the calculations.
aidsMono
returns a list of class aidsMono
that contains following elements:
monotony |
a logical vector indicating whether the monotony condition is fulfilled at each observation. |
nValidObs |
number of (valid) observation at which monotonicity could be checked. |
nMonoObs |
number of observation at which the monotonicity codition is fulfilled. |
monoPercent |
percent of observations where the monotony condition is fulfilled. |
priceIndex |
a chacter string indicating the price index
specified by argument |
Arne Henningsen
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 )
# Data on food consumption are available only for the first 32 years
Blanciforti86 <- Blanciforti86[ 1:32, ]
priceNames <- c( "pFood1", "pFood2", "pFood3", "pFood4" )
shareNames <- c( "wFood1", "wFood2", "wFood3", "wFood4" )
## AIDS
estResult <- aidsEst( priceNames, shareNames, "xFood",
data = Blanciforti86, method = "IL" )
aidsMono( priceNames, "xFood", coef = coef( estResult ),
data = Blanciforti86 )
## LA-AIDS with Tornqvist price index
estResultLaT <- aidsEst( priceNames, shareNames, "xFood",
data = Blanciforti86, priceIndex = "T" )
# with fitted expenditure shares in the price index
aidsMono( priceNames, "xFood", coef = coef( estResultLaT ),
data = Blanciforti86, priceIndex = "T",
basePrices = estResultLaT$basePrices,
baseShares = estResultLaT$baseShares )
# with observed expenditure shares in the price index
aidsMono( priceNames, "xFood", coef = coef( estResultLaT ),
data = Blanciforti86, priceIndex = estResultLaT$lnp )