Abstract
A system of equations must satisfy a number of requirements if it is to represent legitimate demand functions. The properties of symmetry and negativity are, for example, required to allow utility maximisation while homogeneity and adding up are needed to satisfy the budget constraint, see Chapter 3 and Deaton and Muellbauer (1980a).
The theoretical results in this chapter are based on Edgerton (1995).
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References
See Anderson and Blundell (1982, 1983) and Blanciforti et al (1986).
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© 1996 Kluwer Academic Publishers
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Edgerton, D. (1996). Testing Adding Up in the Common Model. In: The Econometrics of Demand Systems. Advanced Studies in Theoretical and Applied Econometrics, vol 34. Springer, Boston, MA. https://doi.org/10.1007/978-1-4613-1277-2_11
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DOI: https://doi.org/10.1007/978-1-4613-1277-2_11
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