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Choosing between the AIDS and Rotterdam models: A meat demand analysis case study

Author

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  • Taljaard, Pieter R.
  • van Schalkwyk, Herman D.
  • Alemu, Zerihun Gudeta

Abstract

Due to the inability of economic theory to choose ex ante between the Almost Ideal Demand System (AIDS) and the Rotterdam model, a non-nested test was used. The results of the non-nested test points to the Linearized-AIDS model applied to 31 years of meat consumption data in South Africa. When comparing the estimated demand relations of the two models, the LA/AIDS model also proved to be better fit for South African meat demand.

Suggested Citation

  • Taljaard, Pieter R. & van Schalkwyk, Herman D. & Alemu, Zerihun Gudeta, 2006. "Choosing between the AIDS and Rotterdam models: A meat demand analysis case study," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 45(2), pages 1-15, June.
    • Handle: RePEc:ags:agreko:31710
    DOI: 10.22004/ag.econ.31710
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    References listed on IDEAS

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    1. Dameus, Alix & Richter, Francisca G.-C. & Brorsen, B. Wade & Sukhdial, Kullapapruk Piewthongngam, 2002. "Aids Versus The Rotterdam Demand System: A Cox Test With Parametric Bootstrap," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(2), pages 1-13, December.
    2. Davidson, Russell & MacKinnon, James G, 1981. "Several Tests for Model Specification in the Presence of Alternative Hypotheses," Econometrica, Econometric Society, vol. 49(3), pages 781-793, May.
    3. Julian M. Alston & James A. Chalfant, 1993. "The Silence of the Lambdas: A Test of the Almost Ideal and Rotterdam Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(2), pages 304-313.
    4. Gary. W. Brester & Michael K. Wohlgenant, 1991. "Estimating Interrelated Demands for Meats Using New Measures for Ground and Table Cut Beef," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 1182-1194.
    5. Alston, Julian M. & Chalfant, James A., 1991. "Can We Take The Con Out Of Meat Demand Studies?," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(1), pages 1-13, July.
    6. Badurally-Adam, M.S.A. & Darroch, Mark A.G., 1997. "Impact on South African meat demand of a possible free trade agreement with the European Union," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 36(4), pages 1-9, December.
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    Cited by:

    1. Brian J. Revell, 2015. "One Man's Meat … 2050? Ruminations on Future Meat Demand in the Context of Global Warming," Journal of Agricultural Economics, Wiley Blackwell, vol. 66(3), pages 573-614, September.
    2. Dhraief, Mohamed Zied & Oueslati, Meriem & Dhehibi, Boubaker, 2012. "Meat And Fish Demand In Tunisia: Economic And Socio-Demographic Factors Effects," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126710, International Association of Agricultural Economists.
    3. Siettou, Christina, 2016. "Avian Influenza: outbreaks and the impact on UK consumer demand for poultry," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236328, Agricultural Economics Society.
    4. Widenhorn, Andreas & Salhofer, Klaus, 2014. "Using a Generalized Differenced Demand Model to Estimate Price and Expenditure Elasticities for Milk and Meat in Austria," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 63(02), pages 1-16, June.
    5. Dhraief, Mohamed Zied & Oueslati, Meriem & Dhehibi, Boubaker, 2013. "Income, Education and Age Effects on Meat and Fish Demand in Tunisia," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 1(2), pages 1-12.
    6. Widenhorn, Andreas & Salhofer, Klaus, 2014. "Using a Generalized Differenced Demand Model to Estimate Price and Expenditure Elasticities for Milk and Meat in Austria," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 63(2).
    7. Habibeh Sherafatmand & Ali Akbar Baghestany, 2015. "Comparison of Rotterdam Model versus almost ideal demand system for fish and red meat," Agrekon, Taylor & Francis Journals, vol. 54(1), pages 120-137, March.

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