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Documents 2010/45

Technical documentation

A multi-stage consumer demand system based on LES at all levels

A new consumer demand system for the MSG model is documented. Altogether there are 27 basic commodities. The modelling of the allocation system is based on a utility tree approach. Four different branches are involved: Groceries, Housing, Transport and Other goods and services. The complete allocation model and the values of all its parameters are documented. The parameters are obtained by combining estimation and calibration. To investigate the properties of the model we calculate expenditure and price elasticties (both uncompensated and compensated) by simulation. Since the elasticities depend on the year in which they are evaluated, they are reported for a selection of years, 2060 being the ultimate one.

About the publication


A multi-stage consumer demand system based on LES at all levels. Technical documentation


Terje Skjerpen

Series and number

Documents 2010/45


Statistisk sentralbyrå


Methods and documentation

ISBN (online)


ISBN (printed)


Number of pages




About Documents

Documentation, descriptions of methods, models and standards are published in the series Documents.