Testing Separability for Common Wheat Qualities in French Import Demand Market Using Aids and Rotterdam Demand Models
This study has used a corrected likelihood ratio, with AIDS and Rotterdam demand models, to test separability in three separable (A, B, C) wheat import demand structures on the French common wheat market. It appears from the study that the three separable Rotterdam structures are accepted by the test, while only two of them (B and C) are accepted in the case of AIDS at 5% level of significance. Meanwhile, model B seems to be more indicated in demand analysis with AIDS since it is the only one accepted at 15% level of significance. The results obtained demonstrate not only the necessity to test separability in demand structures, but also the necessity to know how the allocation models can be used for demand analysis purpose. The study has also shown a great difference in econometric results for AIDS and Rotterdam and pose once more the issue of the choice of a functional form in demand analysis.
|Date of creation:||2002|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.eaae.org|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Berndt, Ernst R & Savin, N Eugene, 1975. "Estimation and Hypothesis Testing in Singular Equation Systems with Autoregressive Disturbances," Econometrica, Econometric Society, vol. 43(5-6), pages 937-57, Sept.-Nov.
- W. Erwin Diewert & T.J. Wales, 1989.
"Flexible Functional Forms and Global Curvature Conditions,"
NBER Technical Working Papers
0040, National Bureau of Economic Research, Inc.
- Diewert, Walter E & Wales, Terence J, 1987. "Flexible Functional Forms and Global Curvature Conditions," Econometrica, Econometric Society, vol. 55(1), pages 43-68, January.
- Lord, Montague J, 1989. "Production Differentiation in International Commodity Trade," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 51(1), pages 35-53, February.
- William A. Barnett, 1979. "Theoretical Foundations for the Rotterdam Model," Review of Economic Studies, Oxford University Press, vol. 46(1), pages 109-130.
- Moschini, GianCarlo & Moro, D., 1994.
"Autocorrelation Specification in Singular Equation Systems,"
Staff General Research Papers
11134, Iowa State University, Department of Economics.
- Moschini, Giancarlo & Moro, Daniele, 1994. "Autocorrelation specification in singular equation systems," Economics Letters, Elsevier, vol. 46(4), pages 303-309, December.
- Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-59, December.
- 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.
- Giancarlo Moschini & Daniele Moro & Richard D. Green, 1994. "Maintaining and Testing Separability in Demand Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(1), pages 61-73.
- Paul Brenton, 1989. "The allocation approach to trade modelling: Some tests of separability between imports and domestic production and between different imported commodity groups," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 125(2), pages 230-251, June.
- Dixit, Avinash K & Stiglitz, Joseph E, 1975.
"Monopolistic Competition and Optimum Product Diversity,"
The Warwick Economics Research Paper Series (TWERPS)
64, University of Warwick, Department of Economics.
- Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
- Mohanty, Samarendu & Peterson, E. Wesley F., 1999. "Estimation Of Demand For Wheat By Classes For The United States And The European Union," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 28(2), October.
- Italianer, Alexander, 1985. "A small-sample correction for the likelihood ratio test," Economics Letters, Elsevier, vol. 19(4), pages 315-317.
- Jeffrey T. LaFrance, 1993.
"Weak Separability in Applied Welfare Analysis,"
Monash Economics Working Papers
archive-26, Monash University, Department of Economics.
- Haley, Stephen L., 1995. "Product Differentiation in Wheat Trade Modeling," Technical Bulletins 156766, United States Department of Agriculture, Economic Research Service.
- Terry, Justin J. & Marsh, Thomas L., 2000. "Derived Demand For Wheat By Class," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36457, Western Agricultural Economics Association.
- Davis, George C. & Jensen, Kimberly L., 1994. "Two-Stage Utility Maximization And Import Demand Systems Revisited: Limitations And An Alternative," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(02), December.
- 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.
- Bruno Larue, 1991. "Is Wheat a Homogeneous Product?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 39(2), pages 103-117, 07.
- Sellen, Daniel & Goddard, Ellen, 1997. "Weak Separability in Coffee Demand Systems," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 24(1), pages 133-44.
- Hanoch, Giora, 1975. "Production and Demand Models with Direct or Indirect Implicit Additivity," Econometrica, Econometric Society, vol. 43(3), pages 395-419, May.
- Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
When requesting a correction, please mention this item's handle: RePEc:ags:eaae02:24921. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.