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The demand for meat in South Africa: An almost ideal estimation

  • Taljaard, Pieter R.
  • Alemu, Zerihun Gudeta
  • van Schalkwyk, Herman D.
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    A Linear Approximated Almost Ideal Demand System (LA/AIDS), estimated in first differences, was used to anticipate the demand relations for meat (beef, chicken, pork and mutton) in South Africa from 1970 – 2000. Two tests for weak separability, including an F and Likelihood ratio version, failed to reject the null hypothesis of weak separability, confirming that the four meat products are separable, and should be modelled together. According to the Hausman exogeneity test, the expenditure term in the South African meat demand model is exogenous. As a result, a Restricted Seemingly Unrelated Regression (RSUR) was used to estimate the model, whereafter the parameters were used as to calculate compensated, uncompensated and expenditure elasticities.

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    File URL: http://purl.umn.edu/9496
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    Article provided by Agricultural Economics Association of South Africa (AEASA) in its journal Agrekon.

    Volume (Year): 43 (2004)
    Issue (Month): 4 (December)
    Pages:

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    Handle: RePEc:ags:agreko:9496
    Contact details of provider: Web page: http://www.aeasa.org.za/
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    1. Edgerton, David L., 1993. "On The Estimation Of Separable Demand Models," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(02), December.
    2. Paul Newbold & Tony Rayner & Neil Kellard, 2000. "Long-Run Drift, Co-Movement and Persistence in Real Wheat and Maize Prices," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(1), pages 106-121.
    3. Moschini, GianCarlo, 1995. "Units of Measurement and the 'Stone Index' In Demand System Estimation," Staff General Research Papers 5058, Iowa State University, Department of Economics.
    4. Moschini, GianCarlo & Moro, D. & Green, Richard D., 1994. "Maintaining and Testing Separability in Demand Systems," Staff General Research Papers 11247, Iowa State University, Department of Economics.
    5. Frank Asche & Cathy R. Wessells, 1997. "On Price Indices in the Almost Ideal Demand System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1182-1185.
    6. Pashardes, Panos, 1993. "Bias in Estimating the Almost Ideal Demand System with the Stone Index Approximation," Economic Journal, Royal Economic Society, vol. 103(419), pages 908-15, July.
    7. LaFrance, Jeffrey T., 1991. "When Is Expenditure "Exogenous" In Separable Demand Models?," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(01), July.
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