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Calibration of incomplete demand systems in quantitative analysis

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  • John Beghin
  • Jean-Christophe Bureau
  • Sophie Drogue

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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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 36 (2004)
Issue (Month): 8 ()
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. Beghin, John C. & Nureau, Jean-Christophe & Park, Sung Joon, 2002. "Food Security and Agricultural Protection in South Korea," 2002 Conference (46th), February 13-15, 2002, Canberra 125057, Australian Agricultural and Resource Economics Society.
  2. Selvanathan, E. Antony, 1985. "An even simpler differential demand system," Economics Letters, Elsevier, vol. 19(4), pages 343-347.
  3. Fang, Cheng & Beghin, John C., 2002. "Urban Demand for Edible Oils and Fats in China: Evidence from Household Survey Data," Journal of Comparative Economics, Elsevier, vol. 30(4), pages 732-753, December.
  4. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
  5. Jeffrey T. LaFrance & W. Michael Hanemann, 1989. "The Dual Structure of Incomplete Demand Systems," Development Research Unit Working Paper Series archive-21, Monash University, Department of Economics.
  6. LaFrance, J. T. & Beatty, T. K. M. & Pope, R. D. & Agnew, G. K., 2002. "Information theoretic measures of the income distribution in food demand," Journal of Econometrics, Elsevier, vol. 107(1-2), pages 235-257, March.
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Citations

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Cited by:
  1. Beghin, John C. & Elobeid, Amani, 2013. "The Impact of the U.S. Sugar Program Redux," Staff General Research Papers 36172, Iowa State University, Department of Economics.
  2. Miao, Zhen & Beghin, John C. & Jensen, Helen H., 2011. "Accounting for Product Substitution in the Analysis of Food Taxes Targeting Obesity," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103320, Agricultural and Applied Economics Association.
  3. Miao, Zhen & Beghin, John C. & Jensen, Helen H., 2010. "Taxing Sweets: Sweetener Input Tax or Final Consumption Tax?," Staff General Research Papers 31969, Iowa State University, Department of Economics.
  4. Beghin, John & Diop, Ndiame & Matthey, Holger, 2006. "Groundnut trade liberalization: Could the South help the south?," World Development, Elsevier, vol. 34(6), pages 1016-1036, June.
  5. John C. Beghin & Holger Matthey & Ndiame Diop & Mirvat Sewadeh, 2003. "Groundnut Trade Liberalization: A South-South Debate?," Food and Agricultural Policy Research Institute (FAPRI) Publications 03-wp347, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
  6. 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, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
  7. John C. Beghin & Holger Matthey, 2003. "Modeling World Peanut Product Markets: A Tool for Agricultural Trade Policy Analysis," Food and Agricultural Policy Research Institute (FAPRI) Publications 03-wp332, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
  8. Matthey, Holger & Diop, Ndiame & Beghin, John C. & Sewadeh, Mirvat, 2003. "The Impact Of Groundnut Trade Liberalization: Implication For The Doha Round," 2003 Annual meeting, July 27-30, Montreal, Canada 22032, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  9. 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).

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