Question: 4. Consider the following demand equation system. Let Ybe total expenditure on comsumer durables, non-durables and services and (Ed, En, Es) be expenditures on

4. Consider the following demand equation system. Let Ybe total expenditure on

4. Consider the following demand equation system. Let Ybe total expenditure on comsumer durables, non-durables and services and (Ed, En, Es) be expenditures on the three categories, and (Pd, Pn, Ps) are prices of each category. As defined, Y= Ed+En+Es Ed En Es = = d+ dY+ ddPd+ dnPn+ dsPs + d n+ nY+ ndPd+ nnPn + = S nsPs+n + sY+ Y+ sdPd+ snPn + ssPs + Es Prove that + n + = 1, and four other d S estimates (,) sum to zero across equations,. i.e., for example, d+n+ s = 0 and 0 and dd + nd+ sd = 0, etc. (Hint: Use partitioned regression estimation method). Matlab code to read various types of data data load('c:\TEACHING\Econ60302\Homework\Hw1.1Data.txt'); data0=importdata('c:\Teaching \Econ60302\Homework\Table8.1.txt',' ',1); data=xlsread('c:\TEACHING\Econ60302\Homework\TableF2_2.xls');

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