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Calibration of incomplete demand systems in quantitative analysis

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Author Info
John C. Beghin
Jean-Christophe Bureau
Sophie Drogué

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Abstract

An easily implemented and flexible calibration technique for partial demand systems is introduced, combining recent developments in incomplete demand systems and a set of restrictions conditioned on the available elasticity estimates. The technique accommodates various degrees of knowledge on cross-price elasticities, satisfies curvature restrictions, and allows the recovery of an exact welfare measure for policy analysis. The technique is illustrated with a partial demand system for food consumption in Korea for different states of knowledge on cross-price effects. The consumer welfare impact of food and agricultural trade liberalization is measured.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Economics.

Volume (Year): 36 (2004)
Issue (Month): 8 (May)
Pages: 839-847
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Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:839-847

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  1. John C. Beghin & Jean-Christophe Bureau & Sung Joon Park, 2003. "Food Security and Agricultural Protection in South Korea," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 85(3), pages 618-632, 08. [Downloadable!] (restricted)
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  2. Fang, Cheng & Beghin, John C., 2000. "Urban Demand for Edible Oils and Fats in China: Evidence from Household Survey Data," Staff General Research Papers 1863, Iowa State University, Department of Economics. [Downloadable!]
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  3. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Toma, Luiza & Mathijs, Erik & Revoredo Giha, Cesar, 2006. "Linkages between Agriculture, Trade and the Environment in the Context of the European Union Accession," Working Papers 45991, Scottish Agricultural College, Land Economy Research Group. [Downloadable!]
  2. Tokgoz, Simla, 2004. "Can Eu Enlargement Lead To "Immiserizing Growth"? An Empirical Investigation," 2004 Annual meeting, August 1-4, Denver, CO 20100, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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