Flexible functional forms of indirect utility and expenditure functions are frequently used in approximating the behavior of utility maximizing consumers to arrive at demand systems that can be easily estimated. A common nding in time series estimations of the Almost Ideal Demand System is strong persistence in the estimated residuals. This paper suggests two explanations for this result. First...

BACKGROUND Chile is the second world's largest per capita consumer of caloric beverages. Caloric beverages are associated with overweight, obesity and other chronic diseases. The objective of this study is to estimate the price elasticity of demand for soft drinks, other sugar-sweetened beverages and high-energy dense foods in urban areas in Chile in order to evaluate the potential response of ...