Research Of Eles Model Based On The Panel Data

ELES model is one of the important models that are used in consumption structure, the related theory and empirical analysis is a hot research topic. Panel Data Model is an important content of the modern Econometrics. The introduction of timeliness and heterogeneity into Consumption Structure research field, using Panel Data modeling mind, has the important theoretical significance and practical significance. As an important constituent of Modern Consumption Theory, Habit Formation is widely used in Consumption Structure Research. It adds the influence of "psychological stock" to the consumption of the residents into the research of ELES Model to raise the explanatory ability of ELES model to Consumption Structure. This paper makes a systematic summary and improvement of Panel Data, Habit Formation and ELES Model’s combination, to improve the application of ELES Model in the research of Consumption Structure. First of all, derive every possible case when Panel Data is used to establish ELES Model respectively to mixed effect, period effect, individual’s effect and Double effect four conditions. As the most commonly used modeling method of ELES model, cross section modeling method can’t accurately extinguish the existence of individual or time difference of Consumption Structure. And, it is limited that some related researches subjectively assume some certain effect’s existence of the model, without according to the Panel Data modeling steps. Morever, there is no research that analyses the case that all kinds of consumer goods reflect different effect. In the premise of all commodities reflect the same effect, this paper researches the possible existence of hybrid model, time effect, individual effect and double effect models when Panel Data establishing the ELES model. Time, individual and double effect each has basic expenditure’s difference and marginal propensity to consumption’s difference two kinds of circumstances, latter including only marginal propensity to consumption’s difference and basic expenditure and marginal propensity to consumption’s difference. During the research, we improve the basic expenditure of ELES model which has no difference between individuals to the basic requirement adapting to each individual’s income and consumption habit. It can reflect the basic expenditure’s difference between individuals and periods. Then we analysis the panel model’s solution when each goods reflects different effects at the same time.This paper combines habit formation and the PELES model. The earlier consumption or demonstration groups’ consumption will affect the current consumption of the object. So is the consumption structure. Habit formation is widely used in the study of consumption structure, but is rarely in ELES, AIDS and other models specially used in consumption structure’s research. This paper will spread the PELES modeling with internal and external habit formation based on the summary of the existed related research abroad.Because model’s effective needs to be proved through empirical verification. This paper chooses the same data and builds a PELES model to show the validity and advantage of models in this paper in the contrast comparison of existed research.