A Comparison of the Translog and Almost Ideal Demand Models

A version of the Translog demand system is compared with the Almost Ideal demand model within a time series setting, where variables are nonstationary, by testing both models for the theoretical demand propositions of 'homogeneity, symmetry and negativity' and by comparing out of sample forecasting performance. Demographic age and income distributional effects are included in both models.Demand Equations, Age Demographics, Nonstationarity.