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Comparison Of Methodologies In Demand Behavior Analysis

Posted on:2005-01-17Degree:MasterType:Thesis
Country:ChinaCandidate:L Y ShaoFull Text:PDF
GTID:2156360122489082Subject:Industrial Economics
Abstract/Summary:PDF Full Text Request
Microeconomic has its own study angle to study consumption. It tries to answer such question that how a micro-consumer to determine his consumption structure in order to maximize his utility under some price and income conditions. Microeconomic mainly applies econometrics to carry out the consumption study. And the core content of its research is to form and estimate demand system model, then deduce and calculate elasticity (income elasticity and price elasticity), next clarify and explain the implication of elasticity, finally forecast the future consumption and consumption behavior according to the estimate results In brief, it can be divided into three steps to analysis consumption for microeconomic, namely, acquire and deal with data; estimate demand system model; explain the implication of elasticity.It is the research angle and the core content of microeconomic consumption study that determines that the data, with which micro economists face, is various, delicate and complicated. It makes considerate hard to deal with the data. Besides the trouble which is caused by the quantity of data, there are more terrible problems derived from data self s limitation. The limitation there means data cannot satisfy the model's need in some aspects. We must dispose data firstly, then estimate model secondly. Disposing data need strong technique. On the one hand, the disposed data should satisfy model's need; on the other hand, the procedure of disposal should be reasonable. That is to say, the disposed data still reflects the properties of collectivity factually. During the long period research, economists have applied many approaches to dispose data. Even for one kind data problem there are several approaches to resolve. The thesis has laid its eye on a familiar data problem, namely, absence of some observations. There are three approaches to deal with this problem, which are introduced and compared in this thesis: one is to throw off the absent observations; second is to replace the absent observations with the average of other observations; and third can be called first derivative approach.Model estimation is the core content of microeconomic consumption study. Economists have summarized some kinds of good-quality consumption model based on a great deal empirical study work. Each kind of model has it self s premise and applicable conditions. They have respective characteristics and strong points. Simultaneously, they request data to satisfy different needs. However, at the present time, there are several kinds of model, which are more popular with micro economists all over the world, namely, LES model and AIDS(LA/AIDS) model. They base the empirical study on the solid theory analysis. In other words, they have strong realistic and theoretic significance. Different from earlier models that economists applied to analysis consumption structure, such kinds of model have avoided the disadvantage that is the models cannot build a bridge between theory foundation and empirical study. That is to say, economists at that time rarely analysis consumers' instinct of maximizing utility when they carried out consumption study. The thesis has used the same data to estimate LA/AIDS, AIDS, LES and calculated their elasticity, respectively. During the work, the thesis has analyzed and compared characteristics of models respectively, including theoreticalcharacteristics, elasticity characteristics and characteristics of changes of results after disposal of abnormal observations. This chapter is emphasis of whole thesis.Though model estimation is the core content of microeconomic consumption study, to make use of results of estimation to calculate elasticity is one of genuine purposes of micro economists to estimate models. For demand elasticity can directly reflect the relationship between consumption and variables that have influence on consumption such as income and prices. Elasticity is much significant for economists to forecast and put forward policy suggestion. To calculate elasticity seems to be easy. But if p...
Keywords/Search Tags:consumption, consumption structure model, research methods of consumption economics
PDF Full Text Request
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