IDEAS home Printed from https://ideas.repec.org/a/spr/empeco/v24y1999i2p211-223.html
   My bibliography  Save this article

Testing for negativity in a demand system: A Bayesian approach

Author

Listed:
  • Hideo Kozumi

    (Faculty of Economics and Business Administration, Hokkaido University, Nishi 7, Kita 9, Kita-ku, Sapporo 060-0809, Japan)

  • Noriko Hashimoto

    (Faculty of Economics, Kansai University, 3-3-35 Yamata, Suita, Osaka 564-8680, Japan)

  • Hikaru Hasegawa

    (Faculty of Economics and Business Administration, Hokkaido University, Nishi 7, Kita 9, Kita-ku, Sapporo 060-0809, Japan)

Abstract

The paper introduces Bayesian inference into a demand model. This allows us to test for the negativity condition of the substitution matrix which is difficult to handle directly in the traditional approach. To illustrate the Bayesian inference procedures, we estimate the Rotterdam model and test the demand properties using Japanese data. The empirical results show the importance of specifically considering negativity in demand analysis.

Suggested Citation

  • Hideo Kozumi & Noriko Hashimoto & Hikaru Hasegawa, 1999. "Testing for negativity in a demand system: A Bayesian approach," Empirical Economics, Springer, vol. 24(2), pages 211-223.
    • Handle: RePEc:spr:empeco:v:24:y:1999:i:2:p:211-223
    Note: received: September 1997/final version received: February 1998
    as

    Download full text from publisher

    File URL: http://link.springer.de/link/service/journals/00181/papers/9024002/90240211.pdf
    Download Restriction: Access to the full text of the articles in this series is restricted
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eales, James S. & Henderson, Jason R., 2000. "The Impact Of Negativity On Separability Testing," 2000 Annual meeting, July 30-August 2, Tampa, FL 21817, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Cranfield, J. A. L. & Pellow, Scott, 2004. "The role of global vs. local negativity in functional form selection: an application to Canadian consumer demands," Economic Modelling, Elsevier, vol. 21(2), pages 345-360, March.
    3. J. M. Gil & B. Dhehibi & M. Ben Kaabia & A. M. Angulo, 2004. "Non-stationarity and the import demand for virgin olive oil in the European Union," Applied Economics, Taylor & Francis Journals, vol. 36(16), pages 1859-1869.

    More about this item

    Keywords

    Markov chain Monte Carlo (MCMC) · conditional predictive ordinate (CPO) · Bayes factor · Rotterdam model;

    JEL classification:

    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:empeco:v:24:y:1999:i:2:p:211-223. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.