Application of Rotterdam demand system to Irish data
Item Type:Journal article
Citation:W.K. O'Riordan, 'Application of Rotterdam demand system to Irish data', Economic and Social Research Institute, Economic and Social Review, Vol. 6, No. 4, 1975, 1975, pp511-529
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A demand model which works in logarithmic first differences is applied to data from the Irish economy to estimate price and income elasticities. Six commodity-groups are used. The results are, on the whole, reasonable and consistent with other evidence. Three of the groups show 'luxury' income elasticities, but only one has a price elasticity greater (in absolute value) than unity. Tests applied to i:he model suggest that, contrary to economic theory, an equal proportionate change in income and all prices will cause a change in the consumption pattern. The response to price changes also seems to be asymmetrical.
Author: O'Riordan, W.K.
Publisher:Economic & Social Studies
Type of material:Journal article
Series/Report no:Economic and Social Review
Vol. 6, No. 4, 1975
Availability:Full text available