Calibration of Incomplete Demand Systems in Quantitative Analysis, The

John Beghin (), Jean-Christophe Bureau and Sophie Drogué ()

Food and Agricultural Policy Research Institute (FAPRI) Publications from Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University

Abstract: 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.

Keywords: calibration; exact welfare measure; incomplete demand systems; policy analysis. (search for similar items in EconPapers)
Date: 2003-01
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Related works:
Working Paper: Calibration of Incomplete Demand Systems in Quantitative Analysis, The (2003)
Working Paper: Calibration of Incomplete Demand Systems in Quantitative Analysis, The (2004)
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Persistent link: http://EconPapers.repec.org/RePEc:ias:fpaper:03-wp324

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