Economics 639, Economics of Consumption and Demand Analysis                                  Fall 2000

 

Reading List for Part I  --  Instructor: GianCarlo Moschini             

 

 

1.  Review of Consumer Theory

 

Blundell, R., "Consumer Behaviour: Theory and Empirical Evidence -- A Survey," Economic Journal, 98 (1988):16-65.

 

Cornes, R. Duality and Modern Economics.  Cambridge University Press, 1992. (Chapters 2-4).

 

Deaton, A., and Muellbauer, J. Economics and Consumer Behavior.  Cambridge University Press, 1980. (Chapters 1 and 2).

 

Deaton, A., "Demand Analysis," in Z. Griliches and M.D. Intriligator, eds., Handbook of Econometrics, Volume III, Elsevier Science Publishers, 1986.

 

Mas-Colell, A., Whinston, M.D., and Green, J.R.,  Microeconomic Theory, New-York, Oxford University Press, 1995.  (Chapters 1-3)

 

Varian, H. Microeconomic Analysis, 3rd ed.  Norton, 1992. (chapters 7 and 8)

 

 

2.   Functional Forms and Demand System Specification

 

Banks, J., Blundell, R., and Lewbel, A., "Quadratic Engel Curves and Consumer Demand," Review of Economic and Statistics, LXXIX(1997):527-539.

 

Blackorby, C., Primont, D., and Russell, R.R. Duality, Separability, and Functional Structure. North-Holland, 1978. (pp. 290-296).

 

Christensen, L.R., Jorgenson, D.W., and Lau, L.J. "Transcendental Logarithmic Utility Functions." American Economic Review, 65(1975):367-383.

 

Clements, K.W. "Alternative Approaches to Consumption Theory." In H. Theil and K.W. Clements, eds. Applied Demand Analysis. Ballinger Publishing, 1987.

 

Deaton, A., and Muellbauer, J. Economics and Consumer Behavior.  Cambridge University Press, 1980. (pp. 17-20 and chapter 3).

 

Deaton, A., and Muellbauer, J. "An Almost Ideal Demand System." American Economic Review, 70(1980):312-326.

 

Neves, P.D., "A class of differential demand systems," Economic Letters, 44(1994):83-86.

 

Pollak, R.A., and Wales, T.J. Demand System Specification & Estimation.  Oxford University Press, 1992.  (pp. 3-35 and pp. 53-71).

 

Theil, H. Theory and Measurement of Consumer Demand, part I.  North-Holland, 1975. (Chapter 2)

 

 

3.   Estimation of Demand Systems

 

Attfield, C.L.F., "Estimating a cointegrating demand system," European Economic Review, 41(1997):61-73.

 

Davidson, R., and MacKinnon, J.G. Estimation and Inference in Econometrics.  Oxford University Press, 1993. (pp. 305-319)

 

Edgerton, D.L., "On the Estimation of Separable Demand Models," Journal of Agricultural and Resource Economics, 18(2)(1993):141-146.

 

LaFrance J.T. "When is 'Expenditure' Exogenous in Separable Demand Models?" Western Journal of Agricultural Economics, 16(1991):49-62.

 

Moschini, G., and D. Moro, "Autocorrelation Specification in Singular Equation Systems," Economics Letters, 46(1994):303-309.

 

Pollak, R.A., and Wales, T.J. Demand System Specification & Estimation.  Oxford University Press, 1992.  (Chapter 5).

 

Greene, W.H.  Econometric Analysis, 3rd ed., Prentice-Hall, 1997. (Chapter 15)

 

 

4.   Homotheticity, Separability, and Aggregation

 

Blackorby, C., Primont, D., and Russell, R.R. “Separability: A Survey,” in Barbera, S., Hammond, P. J. and Seidl, C., eds., Handbook of utility theory. Volume 1. Principles, Dordrecht: Kluwer Academic, 1998.

 

Cornes, R. Duality and Modern Economics.  Cambridge University Press, 1992. (Chapters 8).

 

Deaton, A., and Muellbauer, J. Economics and Consumer Behavior.  Cambridge University Press, 1980. (Chapters 5 and 6).

 

Lewbel, A., "Aggregation Without Separability: A Generalized Composite Commodity Theorem," American Economic Review, 86(June 1996):524-543.

 

Moschini, G., Moro, D., and Green, R. "Maintaining and Testing Separability in Demand Systems." American Journal of Agricultural Economics, 76(February 1994):61-73.

 

Pollak, R.A., and Wales, T.J. Demand System Specification & Estimation.  Oxford University Press, 1992.  (pp. 36-53).

 

 

5.   Curvature Conditions and Semiflexible Forms

 

Diewert, W.E., and T.J. Wales, "Flexible Functional Forms and Global Curvature Conditions," Econometrica 55(1987):43-68.

 

Diewert, W.E., and Wales, T.J., "A Normalized Quadratic Semiflexible Functional Form,"  Journal of Econometrics, 37(1988), 327‑342.

 

Lau, L.J., "Testing and Imposing Monotonicity, Convexity, and Quasi‑Convexity Constraints," in Production Economics: A Dual Approach to Theory and Applications (volume 1), eds. M. Fuss and D. McFadden, Amsterdam: North‑Holland, 1978, pp. 409‑453.

 

Moschini, G.,  "The Semiflexible Almost Ideal Demand System,"  European Economic Review 42(1998):349-364.

 

Moschini, G., "Imposing Local Curvature Conditions in Flexible Demand Systems,” Journal of Business and Economic Statistics 17(October 1999): 487-90.

 

 

6.   Dynamic Demand Models

 

Anderson, G., and Blundell, R. "Estimation and Hypothesis Testing in Dynamic Singular Equation Systems." Econometrica, 1982, 1559-1571.

 

Anderson, G., and Blundell, R. "Testing Restrictions in a Flexible Dynamic Demand System: An Application to Consumers' Expenditure in Canada." Review of Economic Studies, 1983, 397-410.

 

Pollak, R.A., and Wales, T.J. Demand System Specification & Estimation.  Oxford University Press, 1992.  (pp. 102-112).

 

 

7.   Inverse and Mixed Demand Systems

 

Anderson, R.W. "Some Theory of Inverse Demand for Applied Demand Analysis." European Economic Review, 14(1980):281-290.

 

Barten, A.P., and Bettendorf, L.J. "Price formation of fish: an application of an inverse demand system," European Economic Review, 33(1989):1509-1525.

 

Browning, M., “Dual Approaches to Utility,” in Barbera, S., Hammond, P. J. and Seidl, C., eds., Handbook of utility theory. Volume 1. Principles, Dordrecht: Kluwer Academic, 1998.

 

Holt, M.T., and B.K. Goodwin, "Generalized Habit Formation in an Inverse Almost Ideal Demand System: An Application to Meat Expenditure in the U.S.," Empirical Economics (1997):293-320.

Moschini, G., and Vissa, A.  "The Linear Inverse Demand System." Journal of Agricultural and Resource Economics, 17(1992):294-302.

 

Moschini, G., and Vissa, A. "Flexible Specification of Mixed Demand Systems." American Journal of Agricultural Economics, 75(1993):1-9.

 

 

8.   Nonparametric Analysis and Structural Change in Demand Models

 

Alston, J.M., and Chalfant, J.A. "Consumer Demand Analysis According to GARP."  North-Eastern Journal of Agricultural Economics, 1992, 125-139.

 

Chavas, J-P, and T.L. Cox, "On nonparametric demand analysis," European Economic Review, 41(1997):75-95.

 

Eales, J.S. and L.J. Unnevehr, "Simultaneity and Structural Change in U.S. Meat Demand,"  American Journal of Agricultural Economics, 75(1993):259-68.

 

Moschini, G., and D. Moro, "Structural Change and Demand Analysis: A Cursory Review,"  European Review of Agricultural Economics, 23(1996):239-261.

 

Varian, H.R. "Non-parametric Tests of Consumer Behavior." Review of Economic Studies, L(1983):99-110.

 

 

9.   Index Numbers and Cost-of-Living Measurement

 

Boskin, M.J., E.R. Dulberger, R.J. Gordon, Z. Griliches and D.W. Jorgenson, “Consumer Prices, the Consumer Price Index, and the Cost of Living,” Journal of Economic Perspectives, 12(Winter 1998):3-26.

 

Deaton, A., and Muellbauer, J. Economics and Consumer Behavior.  Cambridge University Press, 1980. (Chapter 7).

 

Diewert, W.E., “Index Numbers,” in J. Eatwell, M. Milgate, and P. Newman, eds., The New Palgrave—A Dictionary of Economics, Volume 2, New-York, Stockton Press, 1987.

 

Diewert, W.E., “Index Number Issues in the Consumer Price Index,” Journal of Economic Perspectives, 12(Winter 1998):47-58.

 

Moschini, G., "Units of Measurement and the 'Stone Index' in Demand System Estimation,"  American Journal of Agricultural Economics, 77(February 1995):63-68.