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Estimation of an effectively globally regular demand system: An application to United States meat consumption

  • Anitoliy Skripnichenko

    (Department of Rural Economy, University of Alberta, Edmonton, Alberta T6G 2H1)

  • Kevin Chen

    (Department of Rural Economy, University of Alberta, Edmonton, Alberta T6G 2H1)

A combination of Cooper and McLaren's modified almost ideal demand system (AIDS) and Moschini's semiflexible AIDS specification gives an effective globally regular demand system. Using the United States meat price and consumption data, the effectively globally regular demand system was estimated and compared to Cooper and McLaren's modified AIDS. The Likelihood Dominance Criterion showed that Cooper and McLaren's modified AIDS was actually better model than the effectively globally regular demand system proposed. The reason may be due to the fact that the violation of the curvature conditions is not significant for the given data.

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Article provided by Springer in its journal Empirical Economics.

Volume (Year): 27 (2002)
Issue (Month): 4 ()
Pages: 601-606

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Handle: RePEc:spr:empeco:v:27:y:2002:i:4:p:601-606
Note: Received: September 1998/Final Version Received: April 2001
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