Contemporaneous Correlation and Modeling Canada's Imports of U.S. Crops

Ronald A. Babula

Journal of Agricultural Economics Research, 1988, vol. 41, issue 01, 6

Abstract: A multicrop model of Canadian demand for US crops is estimated with Zellner's seemingly unrelated regression (SUR), which corrects for the distortion problem in contemporaneous correlation, and with ordinary least squares (OLS), which ignores the problem Comparing inference parameters, trade elasticity estimates, and out-of-sample foremast performance of the Canadian import demand model's SUR and OLS versions demonstrates the importance of addressing contemporaneous correlation, even though both estimators are unbiased This article addresses three shortcomings of the agricultural trade literature frequent failure to account for easily corrected econometric problems, excessively wide ranges of trade parameter estimates, and frequent failure by researchers to validate models beyond the sample

Keywords: Crop Production/Industries; International Relations/Trade (search for similar items in EconPapers)
Date: 1988
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/137577/files/Babula_41_1.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:uersja:137577

DOI: 10.22004/ag.econ.137577

Access Statistics for this article

More articles in Journal of Agricultural Economics Research from United States Department of Agriculture, Economic Research Service Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().