Abstract

The paper presents and estimates demand functions for components of consumer expenditures in Sweden, based on quarterly data for 1963–72. The model employed, while simple, possesses some attractive features. Income elasticities may be different from unity and complementary as well as substitutionary cross price effects are allowed. Aggregation restrictions hold at all points in time. Additional restrictions such as symmetry and zeroes are added. Results for Sweden from the model are compared to earlier findings by Dahlman and Klevmarken, Goldberger and Gamaletsos, Lluch and Powell, and Parks, who have tested double-logarithmic forms, the Linear Expenditure System, and the Rotterdam model.

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