Demands for Food Products Across the Development Spectrum: Application of a Rank Four Demand System
A rational rank four AIDS model (RAIDS) is used to estimate consumer demands for final goods and services in countries spanning the development spectrum. RAIDS is used as it provides more general price and expenditure responses. It also nests the Quadratic and non-liner AIDS models. RAIDS is estimated using the entire sample and sub-samples based on the country's level of per capita expenditure. Results indicate selection of nested functional form differs by sub-sample. AIDS is selected for the low per capita expenditure countries, sample is considered. Differences in parameter estimates manifest themselves in price and Engel elasticities. Such differences warrant caution when using global demand systems to undertake policy analysis.
|Date of creation:||2005|
|Date of revision:|
|Contact details of provider:|| Web page: http://fare.uoguelph.ca/|
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.:
- Nicholas E. Piggott, 2003. "The Nested PIGLOG Model: An Application to U.S. Food Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 1-15.
- Arthur Lewbel, 2003.
"A rational rank four demand system,"
Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 18(2), pages 127-135.
- James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
- Lewbel, Arthur, 1991. "The Rank of Demand Systems: Theory and Nonparametric Estimation," Econometrica, Econometric Society, vol. 59(3), pages 711-30, 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.
- Cranfield, J. A. L. & Preckel, Paul V. & Eales, James S. & Hertel, Thomas W., 2002. "Estimating consumer demands across the development spectrum: maximum likelihood estimates of an implicit direct additivity model," Journal of Development Economics, Elsevier, vol. 68(2), pages 289-307, August.
- Italianer, Alexander, 1985. "A small-sample correction for the likelihood ratio test," Economics Letters, Elsevier, vol. 19(4), pages 315-317.
When requesting a correction, please mention this item's handle: RePEc:ags:uguewp:34111. 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.