This paper focuses on the residential sector demand for electricity, natural gas and petroleum products (Kerosene, gas oil and LPG) in Iran in the context of a popular locally flexible functional forms - “the almost ideal demand system (AIDS)”. We pay explicit attention to the theoretical regularity conditions of positivity, monotonicity, and curvature. We treat the curvature property as a maintained hypothesis and provide a comparison in terms of models' ability in estimation and in terms of violations of the theoretical regularity conditions.
Finally, We provide a policy perspective, using annually data set from 1971 to 2005 (a total of 35 observations) and parameter estimates and a full set of elasticities (price, income and Allen & Morishima elasticities) that are consistent with full regularity.
JEL Classification: C3, C51, Q41, Q43
Manzoor, D., & Jadidzadeh, A. (2012). Regularity Conditions in Flexible Functional Forms: A Case Study of Residential Energy Demand in Iran. Journal of Economic Research (Tahghighat- E- Eghtesadi), 47(3), 145-163. doi: 10.22059/jte.2012.29258
MLA
Davood Manzoor; Ali Jadidzadeh. "Regularity Conditions in Flexible Functional Forms: A Case Study of Residential Energy Demand in Iran". Journal of Economic Research (Tahghighat- E- Eghtesadi), 47, 3, 2012, 145-163. doi: 10.22059/jte.2012.29258
HARVARD
Manzoor, D., Jadidzadeh, A. (2012). 'Regularity Conditions in Flexible Functional Forms: A Case Study of Residential Energy Demand in Iran', Journal of Economic Research (Tahghighat- E- Eghtesadi), 47(3), pp. 145-163. doi: 10.22059/jte.2012.29258
VANCOUVER
Manzoor, D., Jadidzadeh, A. Regularity Conditions in Flexible Functional Forms: A Case Study of Residential Energy Demand in Iran. Journal of Economic Research (Tahghighat- E- Eghtesadi), 2012; 47(3): 145-163. doi: 10.22059/jte.2012.29258
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