The pattern of Greek demand: evidence from pooled and time series data

Abstract

In this paper we analyze the pattern of Greek demand for consumers' goods in terms of the Ideal Demand System. We estimated, two demand systems and for both we used the same model and the same method of estimation. For the first model we used time-series data to estimate a full demand system of seven equations, while for the second model we used pooled data, involving demographic characteristics of the household, to estimate a subsystem of four equations. From our findings we could say that the first system fits the data better than the second one. The elasticities in this system are sensible and in line with other studies. Finally, both systems we estimated have minor misspecification problems.