(DP 1992-01) AIDS in the Philippines: New Estimates for Policy Analysis

Abstract

Information about demand patterns and how they are likely to change as prices and income change is an extremely important input into the estimation of the welfare and distributional impact of technological change (or, alternatively, of economic policies). This paper employs the Deaton and Muellbauer's Almost Ideal Demand System (AIDS) to derive parameter estimates of consumer demand systems in the Philippines. The estimates are generally comparable with those obtained in other studies and, more importantly, are guaranteed to satisfy the restrictions of consumer demand theory.