Maintaining and Testing Separability in Demand Systems

Moschini, GianCarlo; Moro, Daniele; Green, Richard D.

doi:10.2307/1243921

Cited by 133 publications

(84 citation statements)

References 33 publications

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“…parameters in unrestricted model, Nr − no. parameters in restricted model (Moschini et al 1994). The curvature and symmetry tests were computed with and without first-order autocorrelation corrections of the residuals (see footnote 19) and are available upon request.…”

Section: Estimation Issuesmentioning

confidence: 99%

Economic substitution for US wheat food use by class*

Marsh

2005

Aus J Agri & Res Econ

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Wheat for food use is conceptualised as an input into flour production and demand is derived from an industry profit function to quantify price responsiveness and economic substitutability across wheat classes. Price and substitution elasticities are estimated for hard red winter, hard red spring, soft red wheat, soft white winter and durum wheat. In general, hard red winter and spring wheat varieties are much more responsive to their own price than are soft wheat varieties and durum wheat. Substitution elasticities indicate that hard red winter and hard red spring wheat are economic substitutes for milling purposes.

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Section: Estimation Issuesmentioning

confidence: 99%

Economic substitution for US wheat food use by class*

Marsh

2005

Aus J Agri & Res Econ

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“…This suggests that a multi-stage model is an appropriate way of analyzing food consumption. Moschini et al (1994) also find that income and cross-price elasticities are often smaller in absolute value in a multi-stage model than in a single-stage model.…”

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confidence: 71%

“…This issue has not been addressed in the literature. The literature does include some tests of separability such as Moschini et al (1994), who find for the US that food is weakly separable from non-food items, and that meat products are separable from other types of food. This suggests that a multi-stage model is an appropriate way of analyzing food consumption.…”

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confidence: 99%

Demand Growth in Developing Countries

Abler

2010

OECD Food, Agriculture and Fisheries Papers

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examines structural changes in the demand for agricultural products arising from economic growth in a number of large developing and emerging economies comprising primarily the BRIIC group of countries (Brazil, Russia, India, Indonesia and China). It reviews and evaluates a number of studies made of the effects of economic growth in large developing and emerging economies on agricultural product demand and the structure of demand. In particular, the report seeks to evaluate the effects of economic growth and rising incomes on the composition of agricultural product demand across product categories (e.g. cereals vs. meat), within product categories (e.g. lower-quality cereals vs. higher-quality cereals) and on the evolution of price and income elasticities of demand for agricultural products -that is, how rapidly are they moving toward the low elasticities seen in many OECD countries. The report also utilises the results of these studies to draw out the possible implications for agricultural commodity demand, commodity prices, and possible price volatility.

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“…Several authors, including Green and Alston (1991), Pashardes (1993), , Buse (1994), Hahn (1994), Moschini, Moro and Green (1994), Moschini (1995) and Asche and Wessels (1997), have discussed the relationship between the nonlinear and linear specifications. When prices are highly collinear, it may be adequate to approximate as proportional to some known index, .…”

Section: Linear Aid Model For Tourism Demandmentioning

confidence: 99%

Estimating Price Effects in an Almost Ideal Demand Model of Outbound Thai Tourism to East Asia

Chang¹,

Khamkaew²,

MichaelMcAleer³

2012

J Tourism Res Hospitality

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This paper analyzes the responsiveness of Thai outbound tourism to East Asian destinations, namely China, Hong Kong, Japan, Taiwan and Korea, to changes in effective relative price of tourism, total real total tourism expenditure, and one-off events. The nonlinear and linear Almost Ideal Demand (AID) models are estimated using monthly data to identify the price competitiveness and interdependencies of tourism demand for competing destinations in both long run (static) and short run error correction (dynamic) specifications. Homogeneity and symmetry are imposed in the long run and short run AID models to estimate the elasticities. The income and price elasticities provide useful information for public and private tourism agents at the various destinations to maintain and improve price competitiveness. The empirical results show that price competitiveness is important for tourism demand for Japan, Korea and Hong Kong in the long run, and for Hong Kong and Taiwan in the short run.Keywords: Almost Ideal Demand (AID) model, tourism demand, price competitiveness, substitutes, budget shares, error correction.JEL classifications: C3, C5, D12, L83. 3 IntroductionThe contribution of tourism to economic growth and development has been well documented in the literature. In recent decades, tourism has become one of the world's largest and fastest growing sectors, and has many important economic roles, especially as a major earner of foreign exchange. Numerous attempts have been made to understand the key determinants of tourism demand, with the purpose of implementing appropriate policies and strategies to attract a greater number of international visitors. As a result, competition among tourist destinations has become intense.Price competitiveness is a major factor that could directly affect the attractiveness of a particular destination as changes in tourism prices influence the amount of tourist expenditure (Song and Witt, 2000). This indicator provides useful information that is important for developing pricing policies, planning and marketing strategies.Although Thailand is famous for inbound tourism, the rapidly rising income levels of Thai travellers during the last decade have also fueled a quest for visiting tourism destinations abroad.Overall, 85% of Thai tourism spending takes place in the Asia-Pacific region, with most trips being of one-week duration, and to a single destination. According to the Tourism Authority of Thailand statistical reports for 1996-2007, a high proportion of outbound Thai tourists travel to East Asia, which accounts for over 80% of Thai tourists (see Figure 1). (2010)), the number of outbound Thai travelers to all destinations in East Asia has increased consistently over the past few decades. The specific reduction in tourist activities was also reflected in a slowdown of outbound tourist traffic within the region, which had a negative impact on the overall Asian tourism environment. However, the reduction in Asian tourism recovered rapidly in the third and the fourth quarters of 2...

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Maintaining and Testing Separability in Demand Systems

Cited by 133 publications

References 33 publications

Economic substitution for US wheat food use by class*

Economic substitution for US wheat food use by class*

Demand Growth in Developing Countries

Estimating Price Effects in an Almost Ideal Demand Model of Outbound Thai Tourism to East Asia

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