The analysis of consumer demand in Greece. Model selection and dynamic specification

The paper analyses the pattern of consumer demand in Greece exploring syste matically the questions of the functional form of demand that best fits the data, the appropriate dynamic structure and the empirical validity of the constraints of demand theory. A general dynamic Almost Ideal demand model f or four categories of consumer non-durables for the period 1958-1994 is est imated. The maintained specification rejects the static AI, its counterpart s implied by the partial adjustment and autoregressive disturbances models and, upon applying a non-nested test, the Rotterdam specification. However, it cannot reject homogeneity and symmetry nor the hypothesis of structural stability. (C) 2000 Elsevier Science B.V. All rights reserved. JEL classif ications: C4; D0; D1.