aidsUtility {micEconAids} | R Documentation |
Indirect Utility Function of the Almost Ideal Demand System
Description
These functions calculate the utility level given prices and total expenditure using the indirect utility function of the Almost Ideal Demand System and the partial derivatives of this indirect utility function with repect to prices and total expenditure.
Usage
aidsUtility( priceNames, totExpName, coef, data )
aidsUtilityDeriv( priceNames, totExpName, coef, data, rel = FALSE )
Arguments
priceNames |
a vector of strings containing the names of the prices. |
totExpName |
a string containing the variable name of total expenditure. |
coef |
a list containing the coefficients in elements alpha0 (scalar), alpha (vector), beta (vector), gamma (matrix), and possibly beta0 (scalar, if not given, it is assumed to be 1). |
data |
a data frame containing the data. |
rel |
logical. If |
Value
aidsUtility
returns a numeric vector
that contains the utility levels;
aidsUtilityDeriv
returns a data.frame
that contains the partial derivatives
of the indirect utility function
with repect to prices and total expenditure.
Author(s)
Arne Henningsen
References
Deaton, A.S. and J. Muellbauer (1980) An Almost Ideal Demand System. American Economic Review, 70, p. 312-326.
See Also
Examples
data( Blanciforti86 )
# Data on food consumption are available only for the first 32 years
Blanciforti86 <- Blanciforti86[ 1:32, ]
priceNames <- c( "pFood1", "pFood2", "pFood3", "pFood4" )
shareNames <- c( "wFood1", "wFood2", "wFood3", "wFood4" )
## estimate the (non-linear) AIDS
estResult <- aidsEst( priceNames, shareNames, "xFood",
data = Blanciforti86, method = "IL" )
# calculate the utility levels of each year
utility <- aidsUtility( priceNames, "xFood", coef = coef( estResult ),
data = Blanciforti86 )
utilityDeriv <- aidsUtilityDeriv( priceNames, "xFood",
coef = coef( estResult ), data = Blanciforti86 )
utilityEla <- aidsUtilityDeriv( priceNames, "xFood",
coef = coef( estResult ), data = Blanciforti86, rel = TRUE )