Abstract
The objective of this chapter is to discuss the relationship between the technique of principal components, first applied to economic data in the pioneering paper by Stone (1947), and the analysis of consumer demand.
This article first appeared in A. S. Deaton, ed., Essays in Theory and Management of Consumer Behavior, Cambridge University Press, 1981, 73–112. Reprinted here with the permission of Cambridge University Press. Research supported in part by NSF Grant SOC 76-82718.
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Theil, H., Laitinen, K. (1992). The Independence Transformation: A Review and Some Further Explorations. In: Raj, B., Koerts, J. (eds) Henri Theil’s Contributions to Economics and Econometrics. Advanced Studies in Theoretical and Applied Econometrics, vol 25. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-2408-9_12
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