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Confirmation And Falsification Of Equilibrium Displacement Models

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  • Davis, George C.

Abstract

One of the most important principles in any science is testing and consequently confirmation and falsification. In agricultural economics, the equilibrium displacement model is a popular modeling approach that presently is not testable and consequently cannot be confirmed or falsified. This paper presents four increasingly sophisticated procedures designed to overcome this limitation of equilibrium displacement models. An empirical illustration demonstrates the usefulness of these procedures in deciding between three alternative and theoretically viable equilibrium displacement models.

Suggested Citation

  • Davis, George C., 2001. "Confirmation And Falsification Of Equilibrium Displacement Models," 2001 Annual meeting, August 5-8, Chicago, IL 20525, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea01:20525
    DOI: 10.22004/ag.econ.20525
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    1. Demont, Matty & Tollens, Eric, 2001. "Uncertainties Of Estimating The Welfare Effects Of Agricultural Biotechnology In The European Union," Working Papers 31828, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    2. Capps, Oral, Jr. & Williams, Gary W., 2006. "The Economic Effectiveness of the Cotton Checkoff Program," Reports 90753, Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center.

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