TY  - GEN
AV  - public
N1  - This version is the version of record. For information on re-use, please refer to the publisher?s terms and conditions.
ID  - discovery10092128
T3  - Cemmap Working Paper
CY  - London, UK
PB  - Institute for Fiscal Studies
Y1  - 2019/09/23/
A1  - Lewbel, A
A1  - Nesheim, L
N2  - We propose a demand model where consumers simultaneously choose a few di?erent goods from a large menu of available goods, and choose how much to consume of each good. The model nests multinomial discrete choice and continuous demand systems as special cases. Goods can be substitutes or complements. Random coe?cients are employed to capture the wide variation in the composition of consumption baskets. Non-negativity constraints produce corners that account for di?erent consumers purchasing di?erent numbers of types of goods. We show semiparametric identi?cation of the model. We apply the model to the demand for fruit in the United Kingdom. We estimate the model?s parameters using UK scanner data for 2008 from the Kantar World Panel. Using our parameter estimates, we estimate a matrix of demand elasticities for 27 categories of fruit and analyze a range of tax and policy change scenarios.
KW  - sparse demand
KW  -  discrete choice
KW  -  continuous choice
KW  -  fruit
KW  -  Tobit model
KW  -  scanner data
KW  -  complements
TI  - Sparse demand systems: corners and complements
UR  - https://doi.org/10.1920/wp.cem.2019.4519
ER  -