Thw performance of demand models into the Canadian economy

Abstract

This paper presents four consumer demand models. The Rotterdam, the Linear Expenditure, the Indirect Addilog and the Translogarithmic. In the first part their derivation and theoretical properties are outlined. Afterwards all models are estimated empirically with the help of the same set of data. The paper aims at providing additional sets of estimates for the important coefficients of the models for the Canadian market and not to question the validity of the Neoclassical demand theory. However, the estimates of the Rotterdam and Translogarithmic model are checked for their compatibility with the theory.