On the Complete Systems Approach to Demand Analysis

Complete systems of demand functions form an important part of many econometric macro models and they are also a useful tool for demand analysis in its own right. Econometric aspects of the application of these models are the subject of this volume. It includes discussions of data quality, model specification, choice of model, estimation and prediction. All applications are based on Swedish data. The results suggest that the most important issue in demand analysis is not that of finding the most general utility function but rather to find means of including constraints imposed on consumption by particular properties of commodities and markets and also taking into account sometimes sizable errors in data.