The impact of food price inflation on consumer welfare

The above mentioned papers notwithstanding, much of the previous analysis of consumer demand has used empirically tractable demand systems, including the Linear Expenditure System, the Rotterdam model and the Almost Ideal Demand System. [...] The notion of demand system rank was latter extended and defined as the "…maximum function space spanned by the Engel curves of the demand system,". [...] The values of the LRT statistics indicate failure to reject the restrictions for the QUAIDS model under the alternative of the RAIDS model at the ten percent level. [...] However, results do show failure to accept the restrictions for the AIDS model under the alternative of the QUAIDS model at the five percent level. [...] As shown in Table 1, the QUAIDS model has the lowest AIC, thereby confirming the preference of the QUAIDS over the RAIDS and AIDS models.