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
Development of the extended linear expenditure system from simple saving assumptions
TL;DR: In this paper, an extended linear expenditure system (ELES) is developed as an atemporal maximization of a Stone-Geary utility function wherein saving is treated as a good in itself.
Journal ArticleDOI
A cross-country comparison of consumer expenditure patterns
Journal ArticleDOI
Estimation of demand systems generated by the gorman polar form; a generalization of the s-branch utility tree1
TL;DR: In this paper, the authors characterize the class of direct preference orderings that are dual to the Gorman polar form, including homotheticity, affine homotonicity, and homothesis to minus infinity.
Journal ArticleDOI
Stochastic specification and the estimation of share equations
TL;DR: In this article, the Dirichlet distribution is used to limit shares to the unit simplex, and a comparison of results obtained from the two specifications is made using sampling experiments and data from three different empirical studies.