Dale Jorgenson

Contents

List of Tables

ix

Preface

xi

List of Sources

xxxi

1 Transcendental Logarithmic Utility Functions

1

L.R. Christensen, D.W. Jorgenson, and L.J. Lau

1.1 Introduction

1

1.2 Transcendental Logarithmic Utility Functions

4

1.3 Testing the theory of Demand

7

1.4 Empirical Results

13

1.5 Summary and Conclusion

26

2. The Structure of Consumer Preferences

29

D.W. Jorgenson and L.J. Lau

2.1 Introduction

29

2.2 Transcendental Logarithmic Utility functions with Time-Varying Preferences

32

2.3 Preference Structure

38

2.4 Empirical Results

58

3 Statistical Tests of the Theory of Consumer Behavior

91

Dale W. Jorgenson and L.J. Lau

3.1 Introduction

91

3.2 Integrability

92

3.3 Additive Demand Functions

93

3.4 Rotterdam Demand Functions

95

3.5 Conclusion

101

4 The Integrability of Consumer Demand Functions

103

Dale W. Jorgenson and L.J. Lau

4.1 Introduction

103

4.2 Integrability

106

4.3 Homogeneity and Summability

110

4.4 Symmetry

113

4.5 Nonnegativity and Monotonicity

120

4.6 Conclusion

123

Appendix 4A

124

Appendix 4B

127

Appendix 4C

133

5 Testing the Integrability of consumer Demand Functions, United States, 1947-1971

137

Dale W. Jorgenson and L.J. Lau

5.1 Introduction

137

5.2 Integrability

139

5.3 Empirical Tests

143

5.4 Conclusion

150

6 The Structure of Consumer Preferences, Federal Republic of Germany, 1950-1973

153

K. Conrad and Dale W. Jorgenson

6.1 Introduction

153

6.2 Transcendental Logarithmic Utility Functions with Time-Varying Preferences

154

6.3 Preference Structure

157

6.4 Statistical Tests

168

6.5 Empirical Results

171

6.6 Summary

177

7 Testing the Integrability of Consumer Demand Functions, Federal Republic of Germany, 1950-1973

179

K. Conrad and Dale W. Jorgenson

7.1 Introduction

179

7.2 Direct and Indirect Systems

180

7.3 Integrability

182

7.4 Estimation and Testing

189

7.5 Conclusion

195

Appendix

196

8 Transcendental Logarithmic Model of aggregate Consumer Behavior

203

Dale W. Jorgenson, L.J. Lau, and T.M. Stoker

8.1 Introduction

203

8.2 Exact Aggregation for Consumers with Identical Preferences

220

8.3 Exact Aggregation with Differences in Individual Preferences

242

8.4 Demands as functions of Prices

258

8.5 Translog Model of Consumer behavior

280

8.6 Econometrics of the Translog Model

301

8.7 Aggregate Consumer Behavior in the United States, 1958-1974

323

Appendix 8.1 Cross-Section Estimation Results

350

Appendix 8.2 Aggregate Instrumental Variables

353

9 Aggregate Consumer Expenditures on Energy

357

Dale W. Jorgenson and T.M. Stoker

9.I Aggregate Consumer Expenditures on Energy

357

9.I.1 Introduction

357

9.I.2 Translog Model of Consumer Behavior

359

9.I.3 Econometrics of aggregate Energy Expenditures

369

9.II Individual Energy Expenditures

390

9.II.1 Introduction

390

9.II.2 Consumer Expenditure Survey of 1960/61

392

9.II.3 Consumer Expenditure Survey of 1972

400

9.II.4 Separability of transportation and household Operations

406

9.II.5 Lifestyle and Household Energy Use Survey of 1973

408

9.II.6 Lifestyle and Household Energy Use Survey of 1975

418

9.II.7 Summary and Conclusion

423

Appendix

425

9.III Aggregate Energy Expenditures

428

9.III.1 Introduction

428

9.III.2 Pooled Estimation Results

429

9.III.3 Consumer Expenditure Surveys

437

9.III.4 Separability of Transportation and Household Operations

440

9.III.5 Tests of Structural Change

442

9.III.6 Summary and Conclusion

445

Appendix

447

10 Nonlinear Three-Stage Least Squares Pooling of Cross-Section and Time-Series Observations

449

Dale W. Jorgenson and T.M. Stoker

10.1 Introduction

449

10.2 Stochastic Specification

452

10.3 The nonlinear Three-Stage Least Squares Estimator

457

10.4 Parametric Hypothesis Tests

460

10.5 Estimation Subject to Inequality Restrictions

461

10.6 Illustration: Residential Demand for Energy

463

10.7 Conclusion

470

Appendix 10.A Technical Assumptions

471

Appendix 10.B Instrumental Variables, 1958-1978

473

11 Two-Stage Budgeting and Consumer Demand for Energy

475

Dale W. Jorgenson, D.T. Slesnick, and T.M. Stoker

11.1 Introduction

475

11.2 Translog Model of Consumer Behaviors

476

11.3 Econometrics of Exact Aggregation

487

11.4 Empirical Results

498

11.A Appendix: Instrumental Variables, 1958-1978

509

References

511

Index

523