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Model Choice and Structural Specification for Canadian Meat Consumption

Xiaosong Xu and Michele Veeman

European Review of Agricultural Economics, 1996, vol. 23, issue 3, 301-15

Abstract: Choice of functional form and structural change specification may each influence demand parameter estimates. Joint non-nested testing of both is applied for the linearised almost ideal and Rotterdam models with and without structural change, incorporated using a gradual transition specification. The test of model choice without structural change is inconclusive; the test of models with structural change shows that, for Canadian meat consumption, the gradual-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. Copyright 1996 by Oxford University Press.

Date: 1996
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European Review of Agricultural Economics is currently edited by Timothy Richards, Salvatore Di Falco, Céline Nauges and Vincenzina Caputo

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