IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v75y1993i2p304-313..html
   My bibliography  Save this article

The Silence of the Lambdas: A Test of the Almost Ideal and Rotterdam Models

Author

Listed:
  • Julian M. Alston
  • James A. Chalfant

Abstract

During the past decade, the Linear Approximate (LA) Almost Ideal Demand System and the Rotterdam model have been by agricultural economists as the demand systems of choice in most applications. The apparent explanation is that the two models are both (second-order) locally flexible and compatible with demand theory, they have identical data requirements and are equally parsimonious with respect to parameters, and both are linear in the parameters. While the two models are thus equally attractive in most respects, and indeed appear very similar in structure, they lead to different results in some applications. This article develops a test of each against the other. In an illustrative application to U.S. meat demand, the Almost Ideal model is rejected while the Rotterdam model is not.

Suggested Citation

  • Julian M. Alston & James A. Chalfant, 1993. "The Silence of the Lambdas: A Test of the Almost Ideal and Rotterdam Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(2), pages 304-313.
    • Handle: RePEc:oup:ajagec:v:75:y:1993:i:2:p:304-313.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/1242914
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:75:y:1993:i:2:p:304-313.. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.