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The informational fit and fitting of cross- country demand systems

  • Henri Theil
  • Dongling Chen
Part of the Advanced Studies in Theoretical and Applied Econometrics book series (ASTA, volume 30)

Abstract

Measures from statistical information theory are applied to cross-country demand analysis for several purposes. One is to measure the fit of a model for each country separately, including the Strobel decomposition of this fit. A second purpose is to use this measure of fit for statistically estimating the model. It is shown that this method is superior to maximum likelihood when the sample is small but the model is not. A third purpose is to search for outliers. It is argued that a major source of outliers is the underreported food consumption in a number of less developcd countries.

Keywords

Marginal Utility Purchasing Power Parity Income Elasticity Allocation Model Demand System 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Kluwer Academic Publishers 1996

Authors and Affiliations

  • Henri Theil
  • Dongling Chen

There are no affiliations available

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