Abstract
The purpose of this paper is to present nonlinear econometric models of producer and consumer behavior suitable for incorporation into a general equilibrium model of the U.S. economy. General equilibrium modeling originated with the seminal work of Leontief [50], based on empirical implementation of a static input-output model for the U.S. economy. Leontief [51] gave a further impetus to the development of general equilibrium modeling by introducing a dynamic input-output model.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
References
Amemiya, T. (1974) “The Nonlinear Two-Stage Least Squares Estimator,” Journal of Econometrics, 2, pp. 105–110.
Amemiya, T. (1977) “The Maximum Likelihood Estimator and the Nonlinear Three-Stage Least Squares Estimator in the General Nonlinear Simultaneous Equation Model,” Econometrica, 45, pp. 955–968.
Arrow, K.J., Chenery, H.B., Minnas, B.S., and Solow R.M. (1961) “Capital-Labor Substitution and Economic Efficiency,” Review of Economics and Statistics, 43, pp. 225–250.
Barten, A.P. (1964) “Family Composition, Prices, and Expenditure Patterns,” in P. Hart, G. Mills, and J.K. Whitaker, eds., Econometric Analysis for National Economic Planning: 16th Symposium of the Colston Society, London, Butterworth, pp. 277–292.
Barten, A.P. (1977) “The Systems of Consumer Demand Functions Approach: A Review,” in M.D. Intriligator, ed., Frontiers of Quantitative Economics, IIIA, Amsterdam, North-Holland, pp. 23–58.
Ben-Zion, U. and Ruttan, V.W. (1978), “Aggregate Demand and the Rate of Technical Change,” in H.P. Binswanger and V.W. Ruttan, eds., Induced Innovaton, Baltimore, John Hopkins University Press, pp. 261–275.
Berndt, E.R., Darrough, M.N., and Diewert, W.E. (1977) “Flexible Functional Forms and Expenditure Distributions: An Application to Canadian Consumer Demand Functions,” International Economic Review, 18, pp. 651–676.
Berndt, E.R., and Jorgenson, D.W. (1973) “Production Structure,” Chapter 3 in D.W. Jorgenson and H.S. Houthakker, eds., U.S. Energy Resources and Economic Growth, Washington, Energy Policy Project.
Berndt, E.R., and Wood, D.O. (1975) “Technology, Prices, and the Derived Demand for Energy,” Review of Economics and Statistics, 56, pp. 259–268.
Berndt, E.R. and Wood, D.O. (1979) “Engineering and Econometric Interpretations of Energy-Capital Complementarity,” American Economic Review, 69, pp. 342–354.
Binswanger, H.P. (1974) “The Measurement of Technical Change Biases With Many Factors of Production,” American Economic Review, 64, pp. 964–976.
Binswanger, H.P. (1978a) “Induced Technical Change: Evolution of Thought,” in H.P. Binswanger and V.W. Ruttan, eds., Induced Innovation, Baltimore, John Hopkins University Press, pp. 13–43.
Binswanger, H.P. (1978b) “Issues in Modeling Induced Technical Change,” in H.P. Binswanger and V.W. Ruttan, eds., Induced Innovation, Baltimore, John Hopkins University Press, pp. 128–163.
Blackorby, C., Boyce, R., and Russell, R.R. (1978) “Estimation of Demand Systems Generated by the Gorman Polar Form; A Generalization of the S-Branch Utility Tree,” Econometrica, 46, pp. 345–364.
Blackorby, C., Primont, D., and Russell, R.R. (1978) “Duality, Separability, and Functional Structure,” Amsterdam, North-Holland.
Bureau of the Census various annual issues “Current Population Reports, Consumer Income, Series P-60,” Washington, D.C., U.S. Department of Commerce.
Burmeister, E., and Dobell, A.R. (1969) “Disembodied Technological Change with Several Factors,” Journal of Economic Theory, 1, pp. 1–8.
Carlson, M.D. (1974) “The 1972–1973 Consumer Expenditure Survey,” Monthly Labor Review, 97, pp. 16–23.
Christensen, L.R., Jorgenson, D.W., and Lau, L.J. (1971) “Conjugate Duality and the Transcendental Logarithmic Production Function,” Econometrica, 39, pp. 255–256.
Christensen, L.R., Jorgenson, D.W., and Lau, L.J. (1973) “Transcendental Logarithmic Production Frontiers,” Review of Economics and Statistics, 55, pp. 28–45.
Christensen, L.R., Jorgenson, D.W., and Lau, L.J. (1975) “Transcendental Logarithmic Utility Functions,” American Economic Review, 65, pp. 367–383.
Deaton, A., and Muellbauer, J.S. (1980a) “An Almost Ideal Demand System,” American Economic Review, 70, pp 312–326.
Deaton, A., and Muellbauer, J.S. (1980b) “Economics and Consumer Behavior,” Cambridge, Cambridge University Press.
Faucett, J., and Associates (1977) “Development of 35 Order Input-Output Tables, 1958–1974,” Final Report, Washington, Federal Emergency Management Agency, October.
Fraumeni, B.M., and Jorgenson, D.W. (1980) “The Role of Capital in U.S. Economic Growth, 1948–1976,” in G.M. von Furstenberg, ed., Capital, Efficiency and Growth, Cambridge, Ballinger, pp. 9–250.
Frisch, R. (1959) “A Complete Scheme for Computing all Direct and Cross Demand Elasticities in a Model with Many Sectors,” Econometrica, 27, pp. 177–196.
Gallant, A.R. (1977) “Three-stage Least Squares Estimation for a System of Simultaneous, Nonlinear, Implicit Equations,” Journal of Econometrics, 5, pp. 71–88.
Gallant, A.R., and Jorgenson, D.W. (1979) “Statistical Inference for a System of Simultaneous, Nonlinear, Implicit Equations in the Context of Instrumental variable Estimation,” Journal of Econometrics, 11, pp. 275–302.
Gorman, W.M. (1953) “Community Preference Fields,” Econometrica, 21, pp. 63–80.
Gorman, W.M. (1976) “Tricks with Utility Functions,” in M.J. Artis and A.R. Nobay, eds., Essays in Economic Analysis; Proceedings of the 1975 AUTE Conference, Sheffield, Cambridge, Cambridge University Press, 1976, pp. 211–243.
Gorman, W.M. (1981) “Some Engel Curves,” in A.S. Deaton, ed., Essays in the Theory and Measurement of Consumer Behavior, New York, Cambridge University Press, pp. 7–29.
Hicks, J.R. (1932) “The Theory of Wages,” London, Macmillan (2nd edition, 1963).
Houthakker, H.S. (1957) “An International Comparison of Household Expenditure Patterns Commemorating the Centenary of Engel’s Law,” Econometrica, 25, pp. 532–551.
Houthakker, H.S. (1960) “Additive Preferences,” Econometrica, 28, pp. 244–257.
Hudson, E.A., and Jorgenson, D.W. (1974) “U.S. Energy Policy and Economic Growth,” Bell Journal of Economics and Management Science, 5, pp. 461–514.
Johansen, L. (1960) “A Multi-Sectoral Study of Economic Growth,” Amsterdam, North-Holland.
Jorgenson, D.W. (1973) “Technology and Decision Rules in the Theory of Investment Behavior,” Quarterly Journal of Economics, 87, pp. 523–543.
Jorgenson, D.W., and Fraumeni, B.M. (1981) “Relative Prices and Technical Change,” in E.R. Berndt and B. Field, eds., The Economics of Substitution in Production, Cambridge, M.I.T. Press, 1981.
Jorgenson, D.W., and Laffont, J.J. (1974) “Efficient Estimation of Nonlinear Simultaveous Equations with Additive Disturbances,” Annals of Social and Economic Measurement, 3, pp. 615–640.
Jorgenson, D.W., and Lau, L.J. (1975) “The Structure of Consumer Preferences”, Annals of Economic and Social Measurement, 4, p. 49–101.
Jorgenson, D.W., and Lau, L.J. (1982) “Transcendental Logarithmic Production Functions”, Amsterdam, North-Holland, forthcoming.
Jorgenson, D.W., Lau, L.J., and Stoker, T.M. (1980) “Welfare Comparison under Exact Aggregation,” American Economic Review, 70, pp. 268–272.
Jorgenson, D.W., Lau, L.J., and Stoker, T.M. (1981) “Aggregate Consumer Behavior and Individual Welfare,” in D. Currie, R. Nobay and D. Peel, eds., Macroeconomic Analysis, London, Croom-Helm, pp. 35–61.
Jorgenson, D.W., Lau, L.J., and Stoker, T.M. (1982) “The Transcendental Logarithmic Model of Aggregate Consumer Behavior,” in R.L. Basmann and G. Rhodes, eds., Advances in Econometrics, 1, Greenwich, JAI Press, pp. 97–238.
Kennedy, C. (1964) “Induced Bias in Innovation and the Theory of Distribution,” Economic Journal, 74, pp. 541–547.
Klein, L.R., and Rubin H. (1947–1948) “A Constant-Utility Index of the Cost of Living,” Review of Economic Studies, 15 (2), pp. 84–87.
Lau, L.J. (1977a) “Complete Systems of Consumer Demand Functions through Duality,” in M.D. Intriligator, ed., Frontiers of Quantitative Economics, III A, Amsterdam, North-Holland, 1977, pp. 59–86.
Lau, L.J. (1977b) “Existence Conditions for Aggregate Demand Functions,” Technical Report No. 248, Institute for Mathematical Studies in the Social Sciences, Stanford University, Stanford, California, October (Revised, February 1980).
Lau, L.J., Lin, W.L., and Yotopoulos, P.A. (1978) “The Linear Logarithmic Expenditure System: An Application to Consumption-Leisure Choice,” Econometrica, 46, pp. 843–868.
Leontief, W.W. (1941) “The Structure of the American Economy, 1919–1939”, New York, Oxford University Press (Second edition, 1951).
Leontief, W.W. (1953) ed., “Studies in the Structure of the American Economy,” New York, Oxford University Press.
Leser, C.E.V. (1963) “Forms of Engel Functions,” Econometrica, 31, pp. 694–703.
Lucas, R.E., Jr. (1967) “Tests of a Captial-Theoretic Model of Technological Change,” Review of Economic Studies, 34, pp. 175–180.
Malinvaud, E. (1980) “Statistical Methods of Econometrics, 3rd. ed., Amsterdam, North-Holland.
McFadden, D. (1963) “Constant Elasticity of Substitution Production Functions,” Review of Economic Studies, 30, pp. 73–83.
Muellbauer, J.S. (1975) “Aggregation, Income Distribution, and Consumer Demand,” Review of Economic Studies, 42, pp. 525–543.
Muellbauer, J.S. (1976a) “Community Preferences and the Representative Consumer,” Econometrica, 44, pp. 979–999.
Muellbauer, J.S. (1976b) “Economics and the Representative Consumer,” in L. Solari and J.N. DuPasquier, eds., Private and Enlarged Consumption, Amsterdam, North-Holland, pp. 29–54.
Muellbauer, J.S. (1977) “Testing the Barten Model of Household Composition Effects and the Cost of Children,” Economic Journal, 87, pp. 460–487.
Parks, R.W., and Barten A.P. (1973) “A Cross Country Comparison of the Effects of Prices, Income, and Population Composition on Consumption Patterns,” Economic Journal, 83, pp. 834–852.
Pollak, R.A., and Wales T.J. (1978) “Estimation of Complete Demand Systems from Household Budget Data: The Linear and Quadratic Expenditure Systems,” American Economic Review, 68, pp. 348–359.
Pollak, R.A., and Wales T.J. (1980) “Comparison of the Quadratic Expenditure System and Translog Demand Systems with Alternative Specifications of Demographic Effects,” Econometrica, 48, pp. 595–612.
Prais, S.J., and Houthakker, H.S. (1955) “The Analysis of Family Budgets,” Cambridge, England, Cambridge University Press (2nd ed., 1971).
Roy, R. (1943) “De l’Utilité: Contribution à la Theorie des Choix”, Paris.
Samuelson, P.A. (1951) “Abstract of a Theorem Concerning Substitutability in Open Leontief Models, ” in T.C. Koopmans, ed., Activity Analysis of Production and Allocation, New York, Wiley.
Samuelson, P.A. (1953) “Prices of Factors and Goods in General Equilibrium,” Review of Economic Studies, 21, pp. 120.
Samuelson, P.A. (1956) “Social Indifference Curves,” Quarterly Journal of Economics, 70, pp. 1–22.
Samuelson, P.A. (1965) “A Theory of Induced Innovation Along Kennedy-Weizsacker Lines,” Review of Economics and Statistics, 47, pp. 343–356.
Samuelson, P.A. (1973) “Relative Shares and Elasticities Simplified: Comment,” American Economic Review, 63, pp. 770–771.
Schmookler, J. (1966) “Invention and Economic Growth,” Cambridge, Harvard University Press.
Schultz, H. (1938) “The Theory and Measurement of Demand,” Chicago, University of Chicago Press.
Stone, R. (1954a) “Linear Expenditure Systems and Demand Analysis: An Application to the Pattern of British Demand,” Economic Journal, 64, pp. 511–527.
Stone, R. (1954b) “Measurement of Consumers’ Expenditures and Behaviour in the United Kingdom”, 1, Cambridge, Cambridge University Press.
Uzawa, H. (1962) “Production Functions with Constant Elasticities of Substitution,” Review of Economic Studies, 29, pp. 291–299.
von Weizsäcker, C.C. (1962) “A New Technical Progress function,” Massachusetts Institute of Technology, unpublished manuscript, 23 pp.
Wold, H.O.A., and Jureen L. (1953), “Demand Analysis: A Study in Econometrics”, New York, Wiley.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1982 D. Reidel Publishing Company
About this chapter
Cite this chapter
Jorgenson, D.W. (1982). An Econometric Approach to General Equilibrium Analysis. In: Hazewinkel, M., Kan, A.H.G.R. (eds) Current Developments in the Interface: Economics, Econometrics, Mathematics. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-7933-8_14
Download citation
DOI: https://doi.org/10.1007/978-94-009-7933-8_14
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-009-7935-2
Online ISBN: 978-94-009-7933-8
eBook Packages: Springer Book Archive