Munich Personal RePEc Archive
A Class of Dynamic Demand Systems
Tian, Guoqiang and Chipman, John S.
1989
Online at https://mpra.ub.uni-muenchen.de/41387/
MPRA Paper No. 41387, posted 17 Sep 2012 13:35 UTC
A Class of Dynamic Demand Systems
Guoqiang Tian,John S. Chipman +1 more
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TLDR
In this article, the authors derived closed-form solutions for the total consumption-expenditure function, the savings function and the demand functions from a nonstationary intertemporal utility-maximization problem under uncertainty for a class of demand systems, including the linear expenditure system (LES) from the Klein-Rubin-Samuelson (KRS) utility function.Abstract:
This paper derives closed-form solutions for the total consumption-expenditure function (i.e., aggregate consumption function), the savings function and the demand functions from a nonstationary intertemporal utility-maximization problem under uncertainty for a class of demand systems, including the linear expenditure system (LES) from the Klein-Rubin-Samuelson (KRS) utility function, the generalized linear expenditure systems (GLES) from the CES and S-branch-tree utility functions, the Almost Ideal Demand System (AIDS) from the PIGLOG class of preferences, and the indirect addilog demand system (IADS). We do so by following Hicks’ and Tinmer’s method of maximizing a discounted utility function subject to expected constraints rather than the more fashionable method of maximizing an expected discounted utility function subject to stochastic constraints. Furthermore, the preferences are allowed to vary with the time period. Theoretical analyses for these systems are also given in this paper.read more
Citations
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Journal ArticleDOI
Dynamic Macroeconomic Theory
TL;DR: In this article, real dynamical macroeconomics models of real world macroeconomic models are presented. But the authors focus on real world economic models and do not consider the real world economy.
Journal ArticleDOI
A general-equilibrium intertemporal model of an open economy
John S. Chipman,Guoqiang Tian +1 more
TL;DR: In this paper, a general-equilibrium intertemporal model of a country engaged in international trade is developed, which can be used to address a wide variety of issues of interest under the assumption that prices of tradable commodities (consumer goods and capital goods) and interest rate are exogenous to the country.
Book ChapterDOI
Closed-Form Solutions of General Intertemporal Consumption-Maximization Models*
John S. Chipman,Guoqiang Tian +1 more
TL;DR: In this paper, explicit representations for very general (discrete and continuous-time) intertemporal consumption-maximization models which allow the instantaneous preferences of the consumer and the time-preference factors to vary over time and for the non-existence of utility functions, many commodities, and a wide class of preferences which do not necessarily satisfy the so-called "regularity conditions" (such as differentiability, strict convexity, boundedness, or continuity) were considered.
References
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Journal ArticleDOI
Maximum likelihood estimation of a complete system of demand equations
Journal ArticleDOI
Habit Formation and Dynamic Demand Functions
TL;DR: In this paper, the authors formulate a model of consumer behavior based on habit formation, beginning with a specific class of demand functions derived from the modified Bergson family of utility functions, and then postulate that the parameters of these utility functions and the corresponding demand functions are briefly summarized in Section 1.
Book
Dynamic Macroeconomic Theory
TL;DR: In this article, real dynamical macroeconomics models of real world macroeconomic models are presented. But the authors focus on real world economic models and do not consider the real world economy.
Book ChapterDOI
The Information Approach to Demand Analysis
TL;DR: In this paper, the value share (the proportion of total expenditure spent on a particular commodity) is regarded as a probability in view of the fact that it is nonnegative and adds up to one when summed over all commodities.