Applied Demand Analysis

Demand analysis in general and complete demand systems in particular are the rich areas for the development and testing new tools of applied econometrics The current interest in demand analysis extends to welfare applications and other diverse area such as demand projection computation of true cost of living indices measurement of poverty inequalities and food security calculation of optimal commodity taxes etc Although systematic econometric exercise on demand analysis has started in 1960s hardly any attempt was made in India prior to 1980 The lack of interest in demand studies in India can be attributed to the stability of consumption patterns and non-availability of time-series data on consumer expenditure and consumer price indices Now with the availability of extensive NSS data on consumer expenditure Consumer Price Indices compiled by Labour Bureau Ministry of Labour and also increasing access to better computing facilities few researchers are engaged in the estimation of Complete Demand System in India and their results have been extensively used in planning and policy formulations of the country But studies on demand analysis are scanty at regional state level Considering such aberrations this study is the modest attempt to bridge the gap by estimating two popular demand systems viz LES and AIDS with their variants for exploring the pattern of demand in the backward state like Orissa and the developing country like India The various specifications dimensions and determinants of Complete Demand Systems CDS have been examined in this study The various estimates and elasticitys of LES AIDS and their variants has been estimated and systematically interpreted along with their policy implications which will be of great use to the students scholars and teachers in general and planners policy makers and the executives in particular 415 pp.…