Flexible functional forms of indirect utility and expenditure functions are frequently used in approximating the behavior of utility maximizing consumers to arrive at demand systems that can be easily estimated. A common nding in time series estimations of the Almost Ideal Demand System is strong persistence in the estimated residuals. This paper suggests two explanations for this result. First...

this paper estimates demand functions for wireless and wireline phone, using almost ideal demand system (aids) and attempts to test the hypothesis of substitutability between wireless and wireline in iran. the results indicate that the number of mobile subscribers has been growing more than the number of wireline subscribers over studied period. this maybe because of lower price of mobile acces...

Abstract The traditional applied demand system estimation assumes that when consumer income and commodity prices change, the consumers instantaneously fully adjust to a new consumption equilibrium level use static such as Static Linear Almost Ideal Demand System (Static LA-AIDS) for estimation. However, in real-life situations, an assumption does not hold take time settle level. Hence, dynamic ...