Model selection of meat demand system using the rotterdam model and the Almost Ideal Demand System (AIDS)

Paraguas M. D. S., KAMIL A. A.

Journal of Modern Applied Statistical Methods, cilt.5, sa.2, ss.529-537, 2006 (Scopus) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 5 Sayı: 2
  • Basım Tarihi: 2006
  • Dergi Adı: Journal of Modern Applied Statistical Methods
  • Derginin Tarandığı İndeksler: Scopus
  • Sayfa Sayıları: ss.529-537
  • Anahtar Kelimeler: AIDS, Malaysia, Meat demand, Non-nested test, Rotterdam
  • İstanbul Gelişim Üniversitesi Adresli: Hayır

Özet

Aggregated time series data for differentiated meat products namely, beef, pork, poultry, and mutton were used to estimate and analyze Malaysian market demand for meats. The study aimed to select the most appropriate demand model between the equally popular Rotterdam model and the first difference Linear Approximate Almost Ideal Demand System (LA/AIDS) model by using a non-nested test. Both models were accepted, but further diagnostic tests revealed that the first difference LA/AIDS represents more appropriately the Malaysian market demand for meat than the Rotterdam model. Also, the elasticities from the first difference LA/AIDS were found to be more reliable than the Rotterdam model. Copyright © 2006 JMASM, Inc.