NOTE ON FINITE APPROXIMATIONS OF THE ASYMPTOTICALLY IDEAL MODEL

This note builds on recent work by Serletis and Shahmoradi [Macroeconomic Dynamics 9 (2005), 542–559] and estimates the AIM model at different degrees of approximation, using the same optimization procedures as in Gallant and Golub [Journal of Econometrics. 26 (1984), 295–321]. We estimate the model...

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Bibliographic Details
Published in:Macroeconomic dynamics 2008-09, Vol.12 (4), p.579-590
Main Authors: Serletis, Apostolos, Shahmoradi, Asghar
Format: Article
Language:English
Subjects:
Approximation
Commercial banks
Demand analysis
Econometrics
Economic theory
Expenditures
Macroeconomics
Studies
Travelers checks
Utility functions
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Summary:This note builds on recent work by Serletis and Shahmoradi [Macroeconomic Dynamics 9 (2005), 542–559] and estimates the AIM model at different degrees of approximation, using the same optimization procedures as in Gallant and Golub [Journal of Econometrics. 26 (1984), 295–321]. We estimate the models subject to regularity and provide a comparison between the different versions. We argue that the AIM(3) model estimated subject to global curvature currently provides the best specification for research in semiparametric modeling of consumer demand systems.
ISSN:1365-1005
1469-8056
DOI:10.1017/S1365100508070260