Chapter 30 Demand analysis

Abstract

"Demand analysis" refers largely to the study of commodity demands by consumers, most usually based on aggregate data but occasionally, and more so recently, on cross-sections or even panels of households. This chapter discusses the links between conventional demand analysis and such topics as labor supply, the consumption function, rationing, index numbers, equivalence scales, and consumer surplus. The econometric analysis of demand under conditions of rationing or quantity constraints is discussed in the chapter. The chapter discusses intertemporal demand analysis, including the analysis of the consumption function and of durable goods, the choice over qualities, and the links between demand analysis and welfare economics—particularly as it concerns the measurement of consumer surplus, cost-of-living index numbers, and the costs of children