Calibration of Incomplete Demand Systems in Quantitative Analysis, The

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

Staff General Research Papers from Iowa State University, Department of Economics

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.

New Economics Papers: this item is included in nep-agr
Date: 2004-04-22
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Published in Applied Economics, May 2004, Vol. 8, No. 36, pp. 839-47.

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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 (2003)
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Persistent link: http://EconPapers.repec.org/RePEc:isu:genres:11771

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