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AGGREGATION WITHOUT SEPARABILITY: TESTS OF U.S. AND MEXICAN AGRICULTURAL PRODUCTION DATA AgEcon
Lin, Ni; Davis, George C.; Shumway, C. Richard.
The generalized composite commodity theorem (Lewbel 1996) is used to test for consistent aggregation of U.S. and Mexican agricultural production data in each of the categories for which earlier tests rejected homothetic separability. All U.S. agricultural outputs can be justifiably aggregated into as few as four categories. All Mexican agricultural outputs can be aggregated into as few as five categories. The aggregation of all outputs into a single output cannot be supported in either country by sufficient conditions provided by the generalized composite commodity theorem and/or a homothetically separable technology.
Tipo: Conference Paper or Presentation Palavras-chave: Aggregation; Separability; Generalized composite commodity theorem; Demand and Price Analysis.
Ano: 1998 URL: http://purl.umn.edu/20927
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AIDS and separability: a non sequitur AgEcon
Lee, Jonq-Ying; Brown, Mark G.; Seale, James L., Jr..
The almost ideal demand system (AIDS) is commonly used to study demand for agricultural commodities and groups of commodities. Increasingly, separability has been utilized in conjunction with the AIDS to estimate conditional demand systems as well as to improve upon precision of parameter estimates. The paper shows that separability conditions are inconsistent with use of the AIDS and that tests of separability with the AIDS are problematic.
Tipo: Report Palavras-chave: AIDS; Separability; Demand and Price Analysis.
Ano: 1992 URL: http://purl.umn.edu/52879
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An Empirical Assessment of Endogeneity Issues In Demand Analysis for Differentiated Products AgEcon
Dhar, Tirtha Pratim; Chavas, Jean-Paul; Gould, Brian W..
This article explores the issue of price and expenditure endogeneity in empirical demand analysis. The analysis focuses on the US carbonated soft drink market. We test the null hypothesis that price and expenditures are exogenous in the demand for carbonated soft drinks. Using an Almost Ideal Demand System (AIDS) specification, we strongly reject exogeneity for both prices and expenditures. We find that accounting for price/expenditures endogeneity significantly impacts demand elasticity estimates. We also evaluate the implications of endogeneity issues for testing weak separability.
Tipo: Working or Discussion Paper Palavras-chave: Endogeneity; Separability; Carbonated soft drinks; Almost Ideal Demand System; Demand and Price Analysis.
Ano: 2002 URL: http://purl.umn.edu/25227
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DEMAND FOR MEAT AND FISH PRODUCTS IN KOREA AgEcon
Jung, Jione; Koo, Won W..
The Korean livestock industry is currently facing the critical challenge of the market liberalization trend under the World Trade Organization. This study analyzes the consumption behavior of meat and fish products in Korea, by estimating the Linear Approximate Almost Ideal Demand System (LA/AIDS). The empirical results indicate that beef imports in Korea would increase in the future under trade liberalization. If cheap and better quality imported beef are introduced to Korean consumers, Hanwoo (Korean domestic cattle) beef would not maintain its market share. Key words: Meat, fish, trade liberalization, per capita consumption, demand, separability, and price elasticity.
Tipo: Conference Paper or Presentation Palavras-chave: Meat; Fish; Trade liberalization; Per capita consumption; Demand; Separability; And price elasticity.; Demand and Price Analysis.
Ano: 2002 URL: http://purl.umn.edu/19895
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Import Demand Estimation and the Generalized Composite Commodity Theorem AgEcon
Asche, Frank; Guttormsen, Atle G.; Kristofersson, Dadi; Roheim, Cathy A..
A frequently encountered problem in import demand estimation is how to account for competition between imports and domestic production. Traditionally, use of the Armington model has been a way to handle this problem. This is a disaggregate model which distinguishes commodities by country of origin with import demand determined in a separable two-step procedure. The model appears frequently in analysis of international agricultural markets. However, the Armington model relies on a set of weak separability assumptions, which several authors have shown to be highly questionable. In this paper, a new aggregation theorem, the Generalized Composite Commodity Theorem (GCCT), is applied to test whether imports can be treated as a separate group. An advantage with...
Tipo: Conference Paper or Presentation Palavras-chave: Armington; Separability; GCCT; Demand system; Sword fish; International Relations/Trade; F18; Q11; Q22.
Ano: 2005 URL: http://purl.umn.edu/19432
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IS ORGANIC FOOD A QUALITY ATTRIBUTE OR A PRODUCT CATEGORY? AgEcon
Denver, Sigrid; Christensen, Tove.
The present study investigates the relationships between consumer categorization of organic versus non-organic food products, consumers’ underlying perceptions of organic food, and their propensity to consume organic foods. A choice experiment is used to test these relations in a case study involving consumer preferences for attributes relating to milk. First and foremost, we find a strong link between how consumers categorize food and their organic profile. Second, our study supports earlier findings which indicate that certain socio-demographic variables are important drivers of organic demand together with beliefs in organic foods possessing positive attributes. Third, we find that knowledge concerning a claim stating that milk from grazing cows is...
Tipo: Conference Paper or Presentation Palavras-chave: Organic demand; Separability; Perception of organic foods; Mixtures of logit; Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; Health Economics and Policy.
Ano: 2010 URL: http://purl.umn.edu/116389
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Perpetuation of subsistence farming in Western Balkans: the role of factor market imperfections AgEcon
Latruffe, Laure; Davidova, Sophia; Desjeux, Yann.
The paper analyses the imperfections in output and factor markets in Kosovo that act as a barrier to farm commercialisation. On the one hand, agricultural households may not have access to output market due to an underdeveloped downstream sector. On the other, local producers might not be preferred to importers as their production level is small with a variable quality due to constraints in factor markets. Data from the Agricultural Household Survey 2005 are used. A conceptual framework is developed on the basis of a household model where non-separability results from a “wedge” between purchase and sale prices due to transaction costs. The share of the output sold in the total value of output is regressed over a set of explanatory variables. A truncated...
Tipo: Conference Paper or Presentation Palavras-chave: Subsistence farming; Agricultural households; Separability; Market imperfections; Kosovo; Q12.
Ano: 2008 URL: http://purl.umn.edu/36860
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Testing for Separability in Household Models with Heterogeneous Behavior: A Mixture Model Approach AgEcon
Vakis, Renos; Sadoulet, Elisabeth; de Janvry, Alain; Cafiero, Carlo.
Knowing whether a household behaves according to separability or non-separability is needed for the correct modeling of production decisions. We propose a superior test to those found in the literature on separability by using a mixture distribution approach to estimate the probability that a farm household behaves according to non-separability, and test that the determinants of consumption affect production decisions for households categorized as non-separable. With non-separability attributed to labor market constraints, the switcher equation shows that Peruvian farm households that are indigenous and young, with low levels of education, and lack of local employment opportunities are more likely to be constrained on the labor market.
Tipo: Working or Discussion Paper Palavras-chave: Labor; Separability; Mixture distributions; Peru; Consumer/Household Economics; Labor and Human Capital; J43; C16; Q12.
Ano: 2004 URL: http://purl.umn.edu/25016
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Testing Separability for Common Wheat Qualities in French Import Demand Market Using Aids and Rotterdam Demand Models AgEcon
Njonou, Rabelais Yankam; Frahan, Bruno Henry de; Surry, Yves R..
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...
Tipo: Conference Paper or Presentation Palavras-chave: Separability; Import demand; Rotterdam and AIDS demand models; Wheat qualities; Demand and Price Analysis.
Ano: 2002 URL: http://purl.umn.edu/24921
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The Almost Ideal Demand System Approximation and Separability AgEcon
Brown, Mark G.; Lee, Jonq-Ying.
The paper focuses on separability in the almost ideal demand system (AIDS) in time series analysis. The AIDS approximation based on Stone's price index is specified in terms of the Rotterdam model and block additivity is imposed for illustrative purposes. A generalization to other types of separability is then considered. The model can be viewed as an extension to Theil et al.'s Working-PI time series model. In both the Theil et al. model and the AIDS model examined here, the marginal propensity to spend on a good is allowed to depend on the good's budget share. In the model in this paper, the Slutsky coefficients are further allowed to depend on the budget shares. The model provides a consistent way to analyze subgroup demand relationships.
Tipo: Report Palavras-chave: Almost ideal demand system; Separability; Rotterdam model; Demand and Price Analysis.
Ano: 1990 URL: http://purl.umn.edu/52711
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The Collective Household Enterprise Model: An Empirical Analysis AgEcon
Menon, Martina; Perali, Carlo Federico.
This paper estimates a household model where both the production and consumption sides are observed. The household activities produce both marketable and nonmarketable products. Family members consume market goods, domestically produced goods and leisure. This household equilibrium model is described within a collective framework. The data are from a nation-wide sample of Italian farm-households. The estimation is implemented using a generalized Heckman estimator to account for corner solutions generated by the fact that not all households are engaged in all enterpreneurial activities and do not consume some of all goods and leisure. The identification of the sharing rule stems from the assignability of clothing consumption and leisure.
Tipo: Presentation Palavras-chave: Household collective model; Household and domestic productions; Consumption and leisure; Separability; Consumer/Household Economics.
Ano: 2011 URL: http://purl.umn.edu/120379
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生鮮肉の選好構造に関するノンパラメトリック分析 OAK
澤田, 学; Sawada, Manabu.
Palavras-chave: 生鮮肉需要; 分離可能性; 2段階支出配分; 強分離可能性; ノンパラメトリック・テスト; Demand for fresh meat; Separability; Two-stage budgeting; Strong separability; Nonparametric test.
Ano: 1990 URL: http://ir.obihiro.ac.jp/dspace/handle/10322/1575
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