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Model Choice and Structural Specification for Canadian Meat Consumption
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- Author(s) / Creator(s)
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Choice of functional form and structural change specification may each influence demand parameter estimates. Joint non-nested testing of both is applied for the linearized almost ideal and Rotterdam models with and without structural change, incorporated by the gradual transition approach. The test of model choice without structural change is inconclusive; the test of models with structural change show that, for Canadian meat consumption, the graduate transition almost ideal model is preferred over the gradual transition Rotterdam model. The effect of functional form on demand elasticities for meats is relatively minor but the structural change provision substantially affects these estimates.
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- Date created
- 1996
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- Subjects / Keywords
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- Type of Item
- Report