The Use of Conditional Cost Functions to Generate Estimable Mixed Demand Systems
提出用条件成本函数替代直接和间接效用函数,来生成可估计的混合需求模型,解决了混合需求系统因缺乏封闭形式而难以实证应用的问题。
Mixed demand systems have been virtually ignored in empirical work solely because derivation of these systems requires closed forms for both direct and indirect utility functions. This article proposes the alternative of using a conditional cost function to generate empirical mixed demand models. This approach allows the estimation of mixed demand systems, which are explicit in an unobservable variable (utility), but may lack a closed form representation in terms of observable variables such as prices, quantities and expenditure. Results indicate that this approach is operationally feasible, which opens up a wider range of mixed demand specifications in static analyses.