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Estimating a global MAIDADS demand system considering demography, climate and norms

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  • Britz, Wolfgang

Abstract

Based on data mainly from the International Comparison Program for 156 countries, we conduct a global cross-sectional estimation of an extended rank-3 MAIDADS demand system for nineteen commodity groups including agri-food detail for integration in a Computable General Equilibrium model. We render both marginal budget shares and commitment terms depending on the implicit utility level and consider age shares on the population, the Gini-Coefficient, the share of Islamic population, a sea access indicator and mean temperatures as further explanatory variables. We find that especially demographic factors, the share of Islamic population and mean temperature considerably improve model selection statistics and the fit of commodity groups with a low fit in a variant where prices and income only are used. Graphics of the estimated Engel curves, with details for agro-food commodity groups, highlight income dynamics of budget shares.

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  • Britz, Wolfgang, 2021. "Estimating a global MAIDADS demand system considering demography, climate and norms," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 10(3), July.
    • Handle: RePEc:ags:aieabj:317034
    DOI: 10.22004/ag.econ.317034
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    1. James L. Seale & Anita Regmi, 2006. "Modeling International Consumption Patterns," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(4), pages 603-624, December.
    2. Jeffrey Reimer & Thomas Hertel, 2004. "Estimation of International Demand Behaviour for Use with Input-Output Based Data," Economic Systems Research, Taylor & Francis Journals, vol. 16(4), pages 347-366.
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    1. Haddad, Salwa & Escobar, Neus & Bruckner, Martin & Britz, Wolfgang, 2022. "Promoting extensive cattle production in the European Union has major implications for global agricultural trade and climate change," Discussion Papers 324710, University of Bonn, Institute for Food and Resource Economics.

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