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THE PRODUCTION THEORY APPROACH TO IMPORT DEMAND ANALYSIS: A COMPARISON OF THE ROTTERDAM MODEL AND THE DIFFERENTIAL PRODUCTION APPROACH

Andrew A. Washington and Richard L. Kilmer
Authors registered in the RePEc Author Service: Andrew Muhammad ()

Journal of Agricultural and Applied Economics, 2002, vol. 34, issue 3, 3

Abstract: Results indicate that, when comparing the unconditional derived-demand elasticities to the unconditional consumer demand elasticities, significant differences emerge due to the differences in the first-stage estimation procedure between the differential production approach and the Rotterdam model. In comparing the consumer demand price/corss-price elasticities to the derived-demand price/cross-price elasticities, it is clear that use of the Rotterdam model when a production approach should be used can lead to overestimation, underestimation, and incorrect signs in deriving unconditional price effects.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Date: 2002
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Related works:
Journal Article: The Production Theory Approach to Import Demand Analysis: A Comparison of the Rotterdam Model and the Differential Production Approach (2002) Downloads
Working Paper: THE PRODUCTION THEORY APPROACH TO IMPORT DEMAND ANALYSIS: A COMPARISON OF THE ROTTERDAM MODEL AND THE DIFFERENTIAL PRODUCTION APPROACH (2000) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ags:joaaec:15070

DOI: 10.22004/ag.econ.15070

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