The modern system-wide approach to applied demand analysis
emphasizes a unity between theory and applications. Its fIrm
foundations in economic theory make it one of the most impressive
areas of applied econometrics. This book presents a large number of
applications of recent innovations in the area. The database used
consist of about 18 annual observations for 10 commodities in 18
OECO countries (more than 3,100 data points). Such a large body of
data should provide convincing evidence, one way or the other,
about the validity of consumption theory. A PREVIEW OF THE BOOK The
overall importance of the analysis presented in the book can be
seen from the following table which shows the signifIcant
contribution of the OECO to the world economy. As can be seen, the
24 member countries account for about 50 percent of world GOP in
1975. In this book we present an extensive analysis of the
consumption patterns of the OECO countries.
General
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