In this paper we use the first-order autoregressive scheme in order to introduce dynamics into the AIDS model. We also consider the theoretical restrictions of additivity, homogeneity and symmetry, and use two different specifications of the covariance matrix. We estimate the models using import allocation data for the UK 1952-1979 of five EEC countries and test different specifications against each other.

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doi.org/10.1007/BF01238879, hdl.handle.net/1765/71436
Empirical Economics: a quarterly journal of the Institute for Advanced Studies, Vienna
Erasmus School of Economics

van Heeswijk, B., de Boer, P., & Harkema, R. (1993). A dynamic specification of an AIDS import allocation model. Empirical Economics: a quarterly journal of the Institute for Advanced Studies, Vienna, 18(1), 57–73. doi:10.1007/BF01238879