The data have been analyzed and the estimations carried out in STATA Intercooled Version 10.0. Two models each for both the static and dynamic specifications have been estimated. A comparison of the dynamic models with the static models demonstrates the importance of persistence in demand, , at least in one model, and the difference between the short run and long run equilibrium behaviour. In the static specification, the first type of models are the conventional static one way panel data models, namely, Fixed Effects and Random Effects. For the estimation of the dynamic specification, we used the Arellano–Bond and the Corrected LSDV estimators8.