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Weak Separability And A Test For The Specification Of Income In Demand Models With An Application To The Demand For Meat In Australia

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  • Julian M. Alston
  • James A. Chalfant

Abstract

Most studies of the demand for meat in Australia have used some measure of total income or expenditure, but two recent studies have assumed weak separability of a meat group and used expenditure on the meat group instead. These specification differences are of interest to the extent that they affect the economic interpretation, goodness-of-fit, elasticity estimates, predictive performance or hypothesis tests in empirical demand equations. In this paper, non-nested hypothesis testing procedures are used to test the alternative specifications of the income variable and the hypothesis of separability. The results favour the use of the expenditure variable implied by separability but are mixed concerning whether separability holds.
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Suggested Citation

  • Julian M. Alston & James A. Chalfant, 1987. "Weak Separability And A Test For The Specification Of Income In Demand Models With An Application To The Demand For Meat In Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 31(1), pages 1-15, April.
    • Handle: RePEc:bla:ajarec:v:31:y:1987:i:1:p:1-15
    DOI: j.1467-8489.1987.tb00456.x
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    Cited by:

    1. Lopez, Jose Antonio & Malaga, Jaime E. & Chidmi, Benaissa & Belasco, Eric J. & Surles, James, 2012. "Mexican Meat Demand at the Table Cut Level: Estimating a Censored Demand System in a Complex Survey," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(2), pages 1-27.
    2. Jeffrey T. LaFrance, 1990. "Incomplete Demand Systems And Semilogarithmic Demand Models," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 34(2), pages 118-131, August.
    3. Huseyin Özer, 2003. "Consumption Patterns of Major Food Items in Turkey," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(1), pages 29-40.
    4. Laajimi, A. & Albisu, L. M., 1997. "La demande de viandes et de poissons en Espagne : une analyse micro-économique," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 42.
    5. Gould, Brian W. & Lee, Yoonjung & Dong, Diansheng & Villarreal, Hector J., 2002. "Household Size And Composition Impacts On Meat Demand In Mexico: A Censored Demand System Approach," 2002 Annual meeting, July 28-31, Long Beach, CA 19722, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Zhao, Xueyan & Mullen, John D. & Griffith, Garry R. & Griffiths, William E. & Piggott, Roley R., 2000. "An Equilibrium Displacement Model of the Australian Beef Industry," Research Reports 28007, New South Wales Department of Primary Industries Research Economists.
    7. Piggott, Nicholas E. & Griffith, Garry R., 1992. "Measuring the Demand Response to Advertising in the Australian Meat Industry," 1992 Conference (36th), February 10-13, 1992, Canberra, Australia 147250, Australian Agricultural and Resource Economics Society.
    8. Farrell, Terence C. & Tozer, Peter R., 1996. "Strategic Alliances and Marketing Cooperatives: a Lamb Industry Case Study," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 64(02), pages 1-10, August.
    9. E.J. Roberts, 1990. "The Demand for Meat: Part III," Economics Discussion / Working Papers 90-13, The University of Western Australia, Department of Economics.

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