Intro
Contents
About the Author
List of Tables
1 Introduction
1.1 Background
1.2 Organization of Chapters
References
2 Consumer Demand-Theory
2.1 Introduction
2.2 Consumer's Choice Problem
2.2.1 First-Order Conditions: Application of the Kuhn-Tucker Theorem
2.2.2 Demand Functions
2.3 Comparative Statics of Income and Price Changes
2.3.1 Fundamental Matrix Equation of Consumer Demand
2.3.2 Slutsky Substitution Matrix
2.3.3 General Restrictions of Consumer Behavior
2.4 Comparative Statics of Exogenous Preference Shift Variables

2.5 Comparative Statics with Strictly Concave Utility Function
2.6 Duality Theory: Relationships Between Marshallian, Hicksian, and Frischian Demands
2.7 Inverse Demand Functions
2.7.1 Wold-Hotelling Identity
2.7.2 Comparative Statics
Problems
References
3 Consumer Demand-Separability and Commodity Aggregation
3.1 Introduction
3.2 Restrictions on Price Movements
3.3 Separability Concepts
3.4 Implications of Weak Separability
3.4.1 Theorem 1: Conditional Demand Functions
3.4.2 Total Differential of First-Stage Allocation Equations
3.5 Two-Stage Budgeting

3.5.1 Theorem 2 and Consistency Requirement
3.5.2 Form of Price Indices
3.6 Implications of Strong Separability
3.6.1 General Form of Composite Demand Function
3.6.2 Unconditional Demand Elasticities
3.7 Weak Separability Alone Insufficient to Estimate Unconditional Demand Elasticities
3.8 Empirical Implications
Problems
References
4 Consumer Demand-Empirical Analysis I
4.1 Introduction
4.2 Brief History of Empirical Consumer Demand Models
4.2.1 Single-Equation Approach
4.2.2 Systems of Demand Functions Derived from Directly Specified Utility Function

4.2.3 Formulation of Directly Specified Demand Functions
4.2.4 Derivation of Demand Functions Using Locally Flexible Functional Forms
4.2.5 Demand Functions Derived from Globally Flexible Functional Forms
4.3 System of Demand Equations Estimation
4.4 The Rotterdam Model
4.5 The Almost Ideal Demand System
4.6 The Linear Approximate AIDS
4.7 Comparison of RM with AIDS
4.8 Alternative Differential Demand Systems
4.9 Generalization of AIDS Demand Systems
Problems
References
5 Consumer Demand-Empirical Analysis II
5.1 Introduction

5.2 Application to U.S. Meat Demand
5.2.1 Development of Data Set Based on USDA Disappearance Data
5.2.2 Application to Absolute Price Version of Rotterdam Model
5.2.3 Application to LA/AIDS and AIDS Models
5.2.4 Unconditional Demand Elasticities from Rotterdam Model
5.3 Imposing Negative Semi-Definiteness
5.4 Other Data Sets
Problems
References
6 Quality, Heterogeneous Goods, and Cross-Section Demand
6.1 Introduction
6.2 Unit Values, Prices, and Quality
6.2.1 Problem of Average Prices Varying Across Households
6.2.2 Income and Price Elasticities of Quality