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The Constant Difference Of Elasticities Function With Applications To The Ec Animal Feed Sector

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  • Y. Surry

Abstract

Unlike those flexible functional forms which are local approximations, the ‘Constant Difference of Elasticities’ (CDE) function is globally well‐behaved. Due to its properties and parsimony in the number of parameters, the CDE functional form offers many potential applications. Two empirical applications are presented. First, aggregate CDE input demand functions are specified and estimated econometrically for the feed concentrate markets in Denmark, Ireland and the United Kingdom. The second empirical application illustrates how a matrix of compensated price elasticities can be obtained with only a priori knowledge of its direct and diagonal elements. The suggested approach exploits some of the properties of the Allen elasticities of substitution associated with the CDE functional form.

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  • Y. Surry, 1993. "The Constant Difference Of Elasticities Function With Applications To The Ec Animal Feed Sector," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(1), pages 110-125, January.
    • Handle: RePEc:bla:jageco:v:44:y:1993:i:1:p:110-125
    DOI: 10.1111/j.1477-9552.1993.tb00254.x
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    2. Timilsina, Govinda R. & Mevel, Simon & Shrestha, Ashish, 2011. "Oil price, biofuels and food supply," Energy Policy, Elsevier, vol. 39(12), pages 8098-8105.
    3. Preckel, Paul V. & Cranfield, John A.L. & Hertel, Thomas W., 2005. "Implicit Additive Preferences: A Generalization Of The Ces," Staff Papers 28646, Purdue University, Department of Agricultural Economics.
    4. Herve Guyomard & Chantal Le Mouël & U. Vasavada, 1993. "Applying duality theory in agricultural production economics as a basis of policy decision making [[Application de la théorie de la dualité en économie de la production agricole : utilisation pour ," Post-Print hal-02850915, HAL.
    5. Sean A. Cahill, 1997. "Calculating The Rate Of Decoupling For Crops Under Cap/Oilseeds Reform," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 349-378, January.
    6. Cahill, Sean A., 1993. "Cap Reform: How Decoupled are the Compensatory Payments?," Working Papers 244085, Agriculture and Agri-Food Canada.
    7. Friedrich Schneider & Klaus Salhofer & Erwin Schmid & Gerhard Streicher, 2001. "Was the Austrian agricultural policy least cost efficient?," Economics working papers 2001-03, Department of Economics, Johannes Kepler University Linz, Austria.
    8. Ludo Peeters & Yves Surry, 1997. "A Review Of The Arts Of Estimating Price‐Responsiveness Of Feed Demand In The European Union," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 379-392, January.
    9. Cai, Yiyong & Newth, David & Finnigan, John & Gunasekera, Don, 2015. "A hybrid energy-economy model for global integrated assessment of climate change, carbon mitigation and energy transformation," Applied Energy, Elsevier, vol. 148(C), pages 381-395.
    10. Shumway, C. Richard, 1995. "Recent Duality Contributions In Production Economics," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(1), pages 1-17, July.
    11. Timilsina, Govinda R., 2015. "Oil prices and the global economy: A general equilibrium analysis," Energy Economics, Elsevier, vol. 49(C), pages 669-675.
    12. Hess, Sebastian & Surry, Yves R., 2011. "The CDET Profit Function: Could it generate a Parsimonious Agricultural Sector Model?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114539, European Association of Agricultural Economists.
    13. Govinda Timilsina & Simon Mevel, 2013. "Biofuels and Climate Change Mitigation: A CGE Analysis Incorporating Land-Use Change," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 55(1), pages 1-19, May.
    14. Erwin Corong & Thomas Hertel & Robert McDougall & Marinos Tsigas & Dominique van der Mensbrugghe, 2017. "The Standard GTAP Model, version 7," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 2(1), pages 1-119, June.
    15. Timilsina, Govinda R. & Csordás, Stefan & Mevel, Simon, 2011. "When does a carbon tax on fossil fuels stimulate biofuels?," Ecological Economics, Elsevier, vol. 70(12), pages 2400-2415.
    16. Yang, Anton C., 2020. "Structural Estimation of a Gravity Model of Trade with the Constant-Difference-of-Elasticities Preferences," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304636, Agricultural and Applied Economics Association.

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