Derived Demand Elasticities: Marketing Margin Methods Versus An Inverse Demand Model For Choice Beef
Three methods of calculating the derived elasticity of demand for Choice slaughter beef are used: (a) a traditional marketing margin approach, (b) a modified marketing margin approach, and (c) an econometric, inverse demand model approach. The first method is more restrictive than the second but both tend to overestimate beef price flexibility and revenue changes. The econometric model, though an incomplete demand system, yields demand elasticities that are more consistent with marketing flexibility but are less pronounced than estimates of a complete system. An example using a two-year revenue forecast compares slaughter revenue adjustments based on the first margin method with those based on structural demand models.
Volume (Year): 16 (1991)
Issue (Month): 02 (December)
|Contact details of provider:|| Web page: http://waeaonline.org/|
More information through EDIRC
References listed on IDEAS
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.:
- Randal R. Rucker & Oscar R. Burt & Jeffrey T. LaFrance, 1984. "An Econometric Model of Cattle Inventories," Monash Economics Working Papers archive-25, Monash University, Department of Economics.
- Roberts, Roland K. & Martin, William J., 1985. "The Effects Of Alternative Beef Import Quota Regimes On The Beef Industries Of The Aggregate United States And Hawaii," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 10(02), December.
- Moschini, GianCarlo & Meilke, Karl D., 1984.
"Parameter Stability and the U.S. Demand for Beef,"
Staff General Research Papers
11272, Iowa State University, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:ags:wjagec:32607. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.