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A Multi-ces and Non-Homothetic Approach for Agricultural Trade Analysis: A Modified Armington Procedure

Author

Listed:
  • Ito, Shoichi
  • Chen, Dean T.
  • F. Peterson, E. Wesley

Abstract

This study attempts to develop the original Armington procedure into a multi-CES non-homothetic model. The results using rice trade data indicate that the new approach is superior to the original. Elasticities of substitution for rice imported from individual suppliers appear to vary, and demand for imported rice is not homothetic.

Suggested Citation

  • Ito, Shoichi & Chen, Dean T. & F. Peterson, E. Wesley, 1989. "A Multi-ces and Non-Homothetic Approach for Agricultural Trade Analysis: A Modified Armington Procedure," Staff Reports 257925, Texas A&M University, Agricultural and Food Policy Center.
  • Handle: RePEc:ags:tamfsr:257925
    DOI: 10.22004/ag.econ.257925
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    File URL: https://ageconsearch.umn.edu/record/257925/files/magr-texasam-112.pdf
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    References listed on IDEAS

    as
    1. Carter, Colin & Green, Richard & Pick, Daniel, 1988. "Two-Stage Agricultural Import Demand Models: Theory And Applications," Working Papers 225815, University of California, Davis, Department of Agricultural and Resource Economics.
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    1. Ito, Shoichi & Chen, Dean T. & F. Peterson, E. Wesley, 1989. "Modeling Trade Flows and Market Shares: A Modified Armington Procedure for Rice," Staff Reports 257923, Texas A&M University, Agricultural and Food Policy Center.

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