On Monday 13 October 2008 09:14:23, Marie Vandresse wrote: > I have already used aidsEst() function in the micEcon package for the > estimation of elasticities. > > But with the LES, I plan to estimate the minimal consumption > level...which is not possible with the AIDS model, do I?
You are right; it is not possible to estimate the minimum consumption level with the Almost Ideal Demand System. Unfortunately, I don't see an easy way to estimate the LES in R using system estimation techniques. BTW: I am not convinced that the estimated parameters of the LES that are the minimum consumption levels in theory are good estimates for the actual minimum consumption levels in real life. Arne > Arne Henningsen wrote: > > Hi Marie! > > > > On Friday 10 October 2008 12:40:23, Marie Vandresse wrote: > >> I would like to estimate a linear expendire with Systemfit package. > >> (method: "SUR") > > > > If I remember correctly, the "linear expenditure system" (LES) is linear > > in income but non-linear in the parameters. Hence, you have to estimate a > > system of non-linear equations. Unfortunately, the nlsystemfit() function > > in the systemfit package that estimates systems of non-linear equations > > is still under development and has convergence problems rather often. > > Since the systemfit() function in the systemfit package that estimates > > systems of linear equations is very reliable [1], I suggest that you > > choose a demand system that is linear in parameters (e.g. the Almost > > Ideal Demand System, AIDS) > > > > [1] http://www.jstatsoft.org/v23/i04 > > > >> As someone could show me how to define the equations? > > > > If you use the aidsEst() function in the micEcon package [2], you don't > > have to specify the equations of the Almost Ideal Demand System yourself. > > > > [2] http://www.micEcon.org > > > > Best wishes, > > Arne -- Arne Henningsen http://www.arne-henningsen.name ______________________________________________ R-help@r-project.org mailing list https://stat.ethz.ch/mailman/listinfo/r-help PLEASE do read the posting guide http://www.R-project.org/posting-guide.html and provide commented, minimal, self-contained, reproducible code.
