23. Applications in Economics

  1. Vera Pawlowsky-Glahn2 and
  2. Antonella Buccianti3
  1. Tim Fry

Published Online: 28 JUL 2011

DOI: 10.1002/9781119976462.ch23

Compositional Data Analysis: Theory and Applications

Compositional Data Analysis: Theory and Applications

How to Cite

Fry, T. (2011) Applications in Economics, in Compositional Data Analysis: Theory and Applications (eds V. Pawlowsky-Glahn and A. Buccianti), John Wiley & Sons, Ltd, Chichester, UK. doi: 10.1002/9781119976462.ch23

Editor Information

  1. 2

    Department of Computer Science and Applied Mathematics, University of Girona, Spain

  2. 3

    Department of Earth Sciences, University of Florence, Italy

Author Information

  1. School of Economics, Finance & Marketing, RMIT University, Melbourne, Australia

Publication History

  1. Published Online: 28 JUL 2011
  2. Published Print: 23 SEP 2011

ISBN Information

Print ISBN: 9780470711354

Online ISBN: 9781119976462



  • applications in economics - focus on shares of total, or compositional data;
  • areas in economics, compositional data analysis techniques used - and data analysed;
  • dominant area of application - that of consumer demand systems;
  • consumer demand systems - analysis of data on consumer demand, in economics;
  • economists, and attention - to choosing utility functions, using ‘dual’ approach;
  • use of log-ratio transformations like the alr - appropriate, observed share data not including zeros;
  • compositional data analysis techniques - in studies of income distribution;
  • compositional time series - focus on methodological developments;
  • common measures of income inequality - as Gini coefficients, constructed using income share data;
  • researchers, in economics ignoring - compositional nature of data, rarely applying tools of compositional data analysis to problems


This chapter contains sections titled:

  • Introduction

  • Consumer Demand Systems

  • Miscellaneous Applications

  • Compositional Time Series

  • New Directions

  • Conclusion

  • References