<p>One advantage of considering demand systems is that more data is available for identifying the degree of income effects and substition between commodities. A second advantage is the possibility to impose and test microeconomic restrictions (which are between equations). An introduction to the estimation of demand systems with an historical perspective is provided by:<br />
Berndt, E. R., 1991, <em>The Practice of Econometrics: classic and contemporary</em>, Addison Wesley.<br />
More recent treatments are available in most econometric textbooks.</p>

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2020-11-19T20:04:55.220Z
2020-11-26T06:32:02.223Z
2020-11-26T06:32:02.223Z
Bertrand
<p>I don't understand how is demand systems estimation is different from simple demand equation estimation. What's the best resource for getting a history line of demand systems?</p>

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2021-04-30T17:38:00.327Z
The seminal work is probably [Deaton and Muellbauer](https://www.cambridge.org/core/books/economics-and-consumer-behavior/75DEDED955947555732A39E38D87D0EA). Its from 1980, so a bit dated, but still a great work if you want a good introduction to demand and demand system estimation.
tdm
<microeconomics><econometrics><mathematical-economics><demand><demand-system-estimation>
What are the advantages of using demand systems estimation? How is this different from individual demand estimation for product?
desi arthshastri
# What are the advantages of using demand systems estimation? How is this different from individual demand estimation for product?

(Asked by: username_0 on 2020-11-19)

I don't understand how is demand systems estimation is different from simple demand equation estimation. What's the best resource for getting a history line of demand systems?

**Tags:** microeconomics, econometrics, mathematical-economics, demand, demand-system-estimation
> **Comments:**
> **username_1**: The seminal work is probably [Deaton and Muellbauer](https://www.cambridge.org/core/books/economics-and-consumer-behavior/75DEDED955947555732A39E38D87D0EA). Its from 1980, so a bit dated, but still a great work if you want a good introduction to demand and demand system estimation.  

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## 1 answers

### Answer by username_2 on 2020-11-19. Score: 3 | Accepted answer

One advantage of considering demand systems is that more data is available for identifying the degree of income effects and substition between commodities. A second advantage is the possibility to impose and test microeconomic restrictions (which are between equations). An introduction to the estimation of demand systems with an historical perspective is provided by:  
Berndt, E. R., 1991, *The Practice of Econometrics: classic and contemporary*, Addison Wesley.  
More recent treatments are available in most econometric textbooks.


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