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A cursory review of the identification strategies

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  • Fabio Santeramo

Abstract

The article provides a literature review on the topic of identification of supply and demand. In particular, it discusses the identification problem, that is the issue of having to solve for unique values of the parameters of the structural model from the values of the parameters of the reduced form of the model. We summarize several methodologies employed in the literature to solve this problem and gives practical examples. These solutions include, but are not limited to, using instrumental variables, adopting a recursive structure, holding demand constant, and imposing inequality constraints in order to restrict the domain of estimates. We also discuss on two major recent contributions in agricultural economics. The review will guide researchers in selecting the most suited approach to identify demand and supply. Copyright Santeramo. 2015

Suggested Citation

  • Fabio Santeramo, 2015. "A cursory review of the identification strategies," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 3(1), pages 1-8, December.
    • Handle: RePEc:spr:agfoec:v:3:y:2015:i:1:p:1-8:10.1186/s40100-015-0042-5
    DOI: 10.1186/s40100-015-0042-5
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    References listed on IDEAS

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    1. Santeramo, Fabio Gaetano & Searle, Stephanie, 2019. "Linking soy oil demand from the US Renewable Fuel Standard to palm oil expansion through an analysis on vegetable oil price elasticities," Energy Policy, Elsevier, vol. 127(C), pages 19-23.
    2. Santeramo, Fabio Gaetano & Di Gioia, Leonardo & Lamonaca, Emilia, 2021. "Price responsiveness of supply and acreage in the EU vegetable oil markets: Policy implications," Land Use Policy, Elsevier, vol. 101(C).
    3. Escañuela Romana, Ignacio, 2018. "La elasticidad precio de la demanda de transporte aéreo de pasajeros en los Estados Unidos [The price elasticity of demand for air travel in the United States]," MPRA Paper 83572, University Library of Munich, Germany.
    4. Ignacio Escañuela Romana & Mercedes Torres-Jiménez & Mariano Carbonero-Ruz, 2023. "Price Elasticity of Demand for Domestic Air Travel in the United States: A Robust Quasi-Experimental Estimation," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 51(2), pages 149-167, September.

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