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Confirmation And Falsification Of Equilibrium Displacement Models

  • Davis, George C.

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.

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File URL: http://purl.umn.edu/20525
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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2001 Annual meeting, August 5-8, Chicago, IL with number 20525.

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Date of creation: 2001
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Handle: RePEc:ags:aaea01:20525
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  1. Moschini, GianCarlo & Meilke, Karl D., 1989. "Modeling the Pattern of Structural Change in U.S. Meat Demand," Staff General Research Papers 11266, Iowa State University, Department of Economics.
  2. Koop, Gary, 1994. " Recent Progress in Applied Bayesian Econometrics," Journal of Economic Surveys, Wiley Blackwell, vol. 8(1), pages 1-34, March.
  3. George C. Davis & Maria Cristina Espinoza, 1998. "A Unified Approach to Sensitivity Analysis in Equilibrium Displacement Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(4), pages 868-879.
  4. Choi, Seungmook & Sosin, Kim, 1992. "Structural Change in the Demand for Money," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 24(2), pages 226-38, May.
  5. George C. Davis & M. Cristina Espinoza, 2000. "A Unified Approach to Sensitivity Analysis in Equilibrium Displacement Models: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 241-243.
  6. Griffiths, William E. & Zhao, Xueyan, 1999. "A Unified Approach To Sensitivity Analysis In Equilibrium Displacement Models: Comment," Working Papers 12950, University of New England, School of Economics.
  7. Moschini, GianCarlo & Moro, D. & Green, Richard D., 1994. "Maintaining and Testing Separability in Demand Systems," Staff General Research Papers 11247, Iowa State University, Department of Economics.
  8. John D. Jackson, 1997. "Effects of Health Information and Generic Advertising on U.S. Meat Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 13-23.
  9. McGuirk, Anya M. & Driscoll, Paul J. & Alwang, Jeffrey Roger & Huang, Huilin, 1995. "System Misspecification Testing And Structural Change In The Demand For Meats," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(01), July.
  10. Hahn, William F., 1988. "Effects of Income Distribution on Meat Demand," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 2.
  11. Capps, Oral, Jr. & Schmitz, John D., 1991. "A Recognition Of Health And Nutrition Factors In Food Demand Analysis," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(01), July.
  12. Hahn, William F., 1994. "A Random Coefficient Meat Demand Model," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 3.
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