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THE CALIBRATION OF INCOMPLETE DEMAND SYSTEMS IN QUANTITATIVE ANALYSIS AgEcon
Beghin, John C.; Bureau, Jean-Christophe; Drogue, Sophie.
We introduce an easily implemented and flexible calibration technique for partial demand systems, combining recent developments in incomplete demand systems and a set of restrictions conditioned on the available elasticity estimates. The technique accommodates various degrees of knowledge on cross-price elasticities, satisfies curvature restrictions, and allows the recovery of an exact welfare measure for policy analysis. The technique is illustrated with a partial demand system for food consumption in Korea for different states of knowledge on cross-price effects. The consumer welfare impact of food and agricultural trade liberalization is measured.
Tipo: Conference Paper or Presentation Palavras-chave: Calibration; Exact welfare measure; Incomplete demand systems; Policy analysis.; Demand and Price Analysis.
Ano: 2003 URL: http://purl.umn.edu/25820
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THE CALIBRATION OF INCOMPLETE DEMAND SYSTEMS IN QUANTITATIVE ANALYSIS AgEcon
Beghin, John C.; Bureau, Jean-Christophe; Drogue, Sophie.
We introduce an easily implemented and flexible calibration technique for partial demand systems, combining recent developments in incomplete demand systems and a set of restrictions conditioned on the available elasticity estimates. The technique accommodates various degrees of knowledge on cross-price elasticities, satisfies curvature restrictions, and allows the recovery of an exact welfare measure for policy analysis. The technique is illustrated with a partial demand system for food consumption in Korea for different states of knowledge on cross-price effects. The consumer welfare impact of food and agricultural trade liberalization is measured.
Tipo: Working or Discussion Paper Palavras-chave: Calibration; Exact welfare measure; Incomplete demand systems; Policy analysis; Demand and Price Analysis.
Ano: 2003 URL: http://purl.umn.edu/18462
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Building Gorman's Nest AgEcon
LaFrance, Jeffrey T.; Beatty, Timothy K.M.; Pope, Rulon D..
Gorman Engel curves are extended to incomplete systems. The roles of Slutsky symmetry and homogeneity/adding up are isolated in the rank and functional form restrictions for Gorman systems. Symmetry determines the rank condition. The maximum rank is three for incomplete and complete systems. Homogeneity/adding up determines the functional form restrictions in complete systems. There is no restriction on functional form in an incomplete system. Every full rank and minimal deficit reduced rank Gorman system has a representation as a polynomial in a single function of income. This generates a complete taxonomy of indirect preferences for Gorman systems. Using this taxonomy, we develop models of incomplete Gorman systems that nest rank and functional form and...
Tipo: Working or Discussion Paper Palavras-chave: Aggregation; Functional form; Gorman Engel curves; Incomplete demand systems; Rank; Weak integrability; Demand and Price Analysis; D12; E21.
Ano: 2004 URL: http://purl.umn.edu/25027
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