Showing papers by "Terence Wales published in 1992"
Book•
06 Aug 1992
TL;DR: In this article, the authors explore the principal issues involved in bridging the gap between the pure theory of consumer behavior and its empirical implementation, focusing on the structure of preferences, demographic variables, the treatment of dynamics, and the specification of the stochastic structure of the demand system.
Abstract: This book explores the principal issues involved in bridging the gap between the pure theory of consumer behavior and its empirical implementation. The theoretical starting point is the familiar static, one-period, utility maximizing model in which the consumer allocates a fixed budget among competing categories of goods. The authors focus upon four issues of primary importance in empirical demand analysis: the structure of preferences, the treatment of demographic variables, the treatment of dynamics, and the specification of the stochastic structure of the demand system.
347 citations
TL;DR: In this article, a generalization of the standard normalized quadratic form has been proposed, which can provide a local second-order approximation while maintaining the correct curvature globally.
Abstract: In this paper, the authors propose and estimate a system of producer output supply and input demand functions that generalizes the standard normalized quadratic form. The generalization adds either linear or quadratic splines in a time (or technical change) variable, yet retains the main attractive property of the normalized quadratic, which is that it can provide a local second order approximation while maintaining the correct curvature globally. However, the generalization has additional desirable approximation properties with respect to the splined variable and, thus, permits a more flexible treatment of technical change than is provided by standard flexible functional forms. Copyright 1992 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
108 citations
TL;DR: In this paper, a two-stage Leontief CES cost function is estimated using the Berndt-Wood-Khaled time series data on U.S. manufacturing output.
Abstract: parameters to be estimated is small, and since imposing regularity conditions in the estimation of these technologies is straightforward. We illustrate the technique by estimating the nonseparable two-stage Leontief CES cost function, using the familiar Berndt-Wood-Khaled time series data on U.S. manufacturing output, and compare our results with the familiar (single-stage) translog cost function.
19 citations
01 Jan 1992
TL;DR: In this article, the authors focus on two issues in empirical demand analysis: alternative specifications of demand systems in terms of functional form, dynamic structure, and stochastic structure; and alternative estimation procedures.
Abstract: This paper focuses on two issues in empirical demand analysis: Alternative specifications of demand systems in terms of functional form, dynamic structure, and stochastic structure; and alternative estimation procedures. Four functional forms and two dynamic structures are considered. Each demand specification is estimated using both a first-difference procedure in which the first observation is included, and a maximum likelihood procedure in which the first observation is excluded. The results show that the treatment of the first observation can have substantial effects on predicted behavior.
12 citations