Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/211138 
Year of Publication: 
2019
Series/Report no.: 
cemmap working paper No. CWP45/19
Publisher: 
Centre for Microdata Methods and Practice (cemmap), London
Abstract: 
We propose a demand model where consumers simultaneously choose a few different goods from a large menu of available goods, and choose how much to consume of each good. The model nests multinomial discrete choice and continuous demand systems as special cases. Goods can be substitutes or complements. Random coefficients are employed to capture the wide variation in the composition of consumption baskets. Non-negativity constraints produce corners that account for different consumers purchasing different numbers of types of goods. We show semiparametric identification of the model. We apply the model to the demand for fruit in the United Kingdom. We estimate the model's parameters using UK scanner data for 2008 from the Kantar World Panel. Using our parameter estimates, we estimate a matrix of demand elasticities for 27 categories of fruit and analyze a range of tax and policy change scenarios.
Subjects: 
sparse demand
discrete choice
continuous choice
complements
comple-mentarity
substitutes
demand estimation
scanner data
fruit
quadratic utility
JEL: 
C13
C34
D12
L40
L66
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.