The correct parameter restrictions- less restrictive than commonly thought-of the indirect addilog system (IAS) are derived. Under correct restrictions, the IAS is superior to the linear expenditure system in computable general equilibrium models with data scarcity.

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Keywords CGE-modelling, indirect addilog system, parameter restriction
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de Boer, P.M.C., Brocker, J., Jensen, B.S., & van Daal, J.. (2006). Theoretical restrictions on the parameters of the indirect addilog system revisited (No. EI 2006-11). Report / Econometric Institute, Erasmus University Rotterdam. Retrieved from