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Diane Publishing Books
Almost Ideal Demand System & its Application in General Equilibrium Calculations
Peter Pogany (au). The Almost Ideal Demand System (AIDS) helps analyze consumer behavior. Since its intro. in 1980, AIDS has become a staple of demand theory & has been used in numerous empirical studies. The model facilitates the quantification of consumer demand, based on the well-estab. theoretical axioms of optimal consumer behavior. An understanding of AIDS & its application in CGE analysis is essential to improving existing models & depicting consumer demand realistically in future models. This paper describes AIDS & its place in computable general equilibrium analysis. It introduces Robinsonís W. Hemisphere Free Trade Area model, which is equipped with the AIDS feature, & makes specific observations about its application. Illus.
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