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The Rotterdam Econometric Model Revisited

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The Rotterdam model is an econometric model of consumer demand which has achieved prominence as an elegant and efficient means of obtaining detailed information on the effects of prices and income on the demand for goods and services. Some of its advantages are a rigorous foundation inutility theory, the separation of price and income effects, and the treatment of cross-good effects. This talk will review the methodology, describe the implementation of an efficient general-purpose Rotterdam computer code, and show how the model can be applied to the demand for communications.