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Introducing Asymmetric Separability in the FAST Multistage Demand System

  • Bergtold, Jason S.
  • Peterson, Everett B.

This paper determines the set of parametric restrictions required to maintain flexibility under asymmetric weak separability for the flexible and separable translog (FAST) multistage demand system. Because there is not a unique set of parametric restrictions that ensures separability and the values of the unconditional price and expenditure elasticities depend on the parametric restrictions imposed, the appropriateness of a chosen set of parametric restrictions should be tested empirically. An empirical example that illustrates how the choice of parametric restrictions affects the estimation results and the functional form of the price and expenditure elasticities is provided.

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File URL: http://purl.umn.edu/19497
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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2005 Annual meeting, July 24-27, Providence, RI with number 19497.

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Date of creation: 2005
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Handle: RePEc:ags:aaea05:19497
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  1. Brown, Mark G. & Lee, Jonq-Ying & Seale, James L., Jr., 1994. "Demand Relationships Among Juice Beverages: A Differential Demand System Approach," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(02), December.
  2. 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.
  3. David L. Edgerton, 1997. "Weak Separability and the Estimation of Elasticities in Multistage Demand Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 62-79.
  4. Helen, Dale & Willett, Lois Schertz, 1986. "The Demand For Sweet Spreads: Demographic And Economic Effects For Detailed Commodities," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 15(2), October.
  5. Bergtold, Jason S. & Akobundu, Eberechukwu & Peterson, Everett B., 2003. "The Fast Method: Estimating Unconditional Demand Elasticities For Processed Food In The Presence Of Fixed Effects," 2003 Annual meeting, July 27-30, Montreal, Canada 21893, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  6. Moschini, GianCarlo, 2001. "Flexible Multistage Demand System Based on Indirect Separability, A," Staff General Research Papers 1921, Iowa State University, Department of Economics.
  7. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
  8. Driscoll, Paul J. & McGuirk, Anya M., 1992. "A Class Of Separability Flexible Functional Forms," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(02), December.
  9. repec:cup:cbooks:9780521269124 is not listed on IDEAS
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