Consumer Demand and Labor Supply in Sweden 1980-2003

Abstract This paper analyses the demand,for consumer,goods and leisure in Sweden for the period 1980-2003. A dynamic,version of the AIDS demand,system,is used. An error correction model,is used where,a form of habit formation,is applied. The results show,reasonable,estimates,of price and income,elasticities for the consumer goods. Also, the labor supply elasticity is in line with previous results using micro data. 1,Introduction The estimation of demand,elasticities has a long tradition in applied economics.