Table of Contents

1: Introduction.- 1.1 The System-Wide Approach to Consumption Economics.- 1.2 Two Examples.- 1.3 More on the Linear Expenditure System.- 1.4 Recent Innovations in the System-Wide Approach.- 1.5 International Consumption Comparisons.- 1.6 Some International Consumption Data.- 1.7 Indexes of International Consumption Data.- 1.8 Some Results from the LPW Study.- 1.9 The Rotterdam Model.- 1.10 Working’s Model.- 1.11 Working’s Model and Differential Demand Equations.- 1.12 Further Evidence on Working’s Model.- 1.13 A Demand System for the World.- 1.14 The Comparability of International Data.- 1.15 Policy Implications.- Appendix to Chapter 1.- References.- 2: Empirical Regularities in OECD Consumption.- 2.1 Introduction.- 2.2 The OECD Database.- 2.3 Budget Shares and Price and Quantity Log-changes.- 2.4 Divisia Moments.- 2.5 Relative Prices and Consumption.- 2.6 Double-Log Demand Equations.- 2.7 A Bird’s Eye View of the Elasticities.- 2.8 Is there a Relationship Between the Price and Income Elasticities?.- 2.9 The Relationship Between the Autonomous Trends and Income and Price Elasticities.- 2.10 A Nonparametric Picture of Prices and Quantities.- 2.11 More on the Nonparametric Picture.- Appendices to Chapter 2.- References.- 3: Do OECD Consumers Obey Demand Theory?.- 3.1 Introduction.- 3.2 The Demand Model.- 3.3 Demand Homogeneity.- 3.4 Slutsky Symmetry.- 3.5 Theil’s Monte Carlo Test.- 3.6 Specifying the Covariance Matrix.- 3.7 The Performance of Alternative Specifications of—.- 3.8 Monte Carlo Testing of Homogeneity for the OECD.- 3.9 Monte Carlo Testing of Symmetry for the OECD.- 3.10 Monte Carlo Testing of Preference Independence for the OECD.- 3.11 The Implied Demand Elasticities.- 3.12 More on the Elasticities.- 3.13 Concluding Comments.- Appendices toChapter 3.- References.- 4: How Similar Are OECD Consumers?.- 4.1 Introduction.- 4.2 Model I: A Demand System for Each of the 15 Countries.- 4.3 Model II: Common Demand Parameters.- 4.4 Model III: A Formally Pooled Demand System.- 4.5 Model IV: Theil’s Cross-Country Demand System.- 4.6 Comparison of the Models.- 4.7 More on the Comparison.- 4.8 Do the Demand Parameters Depend on Income and Prices?.- 4.9 Concluding Comments.- Appendices to Chapter 4.- References.- 5:The Reliability of ML Estimators of Systems of Demand Equations.- 5.1 Introduction.- 5.2 The Estimates.- 5.3 The Simulation Procedure.- 5.4 The Simulation Results for Seven Countries with the Usual Covariance Matrix.- 5.5 The Simulation Results for Eighteen Countries with the Alternative Covariance Matrix.- 5.6 The Simulation Results for the Pooled Model.- 5.7 Concluding Comments.- Appendices to Chapter 5.- References.- 6: Further Evidence on the Frisch Conjecture.- 6.1 Introduction.- 6.2 Estimating the Income Flexibility.- 6.3 322 Estimates of the Income Flexibility.- 6.4 A Constant Income Flexibility for Each Country.- 6.5 Testing Frisch’s Conjecture.- 6.6 Comparison with Other Studies.- 6.7 Concluding Comments.- Appendices to Chapter 6.- References.