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.

CGE-modelling, indirect addilog system, parameter restriction
Consumer Economics: Theory (jel D11)
Econometric Institute Research Papers
Report / Econometric Institute, Erasmus University Rotterdam
Erasmus School of Economics

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