ON PRICE INDEXES IN THE ALMOST IDEAL DEMAND SYSTEM

Authors
ASCHE F WESSELLS CR
Citation
F. Asche et Cr. Wessells, ON PRICE INDEXES IN THE ALMOST IDEAL DEMAND SYSTEM, American journal of agricultural economics, 79(4), 1997, pp. 1182-1185
Citations number
16
Journal title
American journal of agricultural economics → ACNP
ISSN journal
00029092
Volume
79
Issue
4
Year of publication
1997
Pages
1182 - 1185
Database
ISI
SICI code
0002-9092(1997)79:4<1182:OPIITA>2.0.ZU;2-I
Abstract
A number of papers have discussed the relationship between the Almost Ideal Demand System (AIDS) and its linear approximation (LA/AIDS). In this paper, it is shown that if the prices in the system are normalize d to one, the AIDS and LA/AIDS representations are identical at the po int of normalization. Also, at the point of normalization, the express ions for price and expenditure elasticities from both systems are iden tical.