Bayesian Analysis of a Japanese Meat Demand System: A Robust Likelihood Approach

Thomas Heckelei, Ron Mittelhammer () and Thomas Wahl

No 18783, Discussion Papers from University of Bonn, Institute for Food and Resource Economics

Abstract: This paper presents an application of Bayesian analysis to an AIDS model of Japanese meat demand extending previous approaches in three ways: (1) The methodology employed is robust with respect to the likelihood function but retains the generic, easily programmable character of algorithms offered by Monte Carlo Integration approaches based on the normal likelihood function. (2) In addition to inequality constraints, linear exact restrictions and stochastic prior information are subjected to a Bayesian posterior analysis of validity and incorporated into Bayesian point estimates of model parameters and elasticities. (3) In order to assess the influence of the prior density on posterior distributions of model parameters relative to the likelihood, a measure quantifying the "degree of prior influence" on the posterior is defined. Das Diskussionspapier stellt eine Bayes'sche Analyse eines AIDS Modells Japanischer Fleischnachfrage vor, die eine Erweiterung fruherer Ansatze in den folgenden drei Punkten darstellt:(1) Die verwendete Methode ist robust bezuglich der Likelihood Funktion, erhalt dabei aber die Flexibilitat und einfache Umsetzung von Algorithmen basierend auf Monte Carlo Integration und der Annahme der Normalverteilung. (2) Zusatzlich zu Ungleichheitsbedingungen werden exakte Restriktionen und stochastische a-priori Information einer Bayes'schen a-posteriori Analyse unterzogen und in die Bayes'sche Punktschatzung von Parametern und Elastizitaten einbezogen. (3) Ein Index zur Messung des Einflusses der a-priori Information auf die a-posteriori Verteilung der Modellparameter wird vorgestellt.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Pages: 43
Date: 1997
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ageconsearch.umn.edu/record/18783/files/dp970001.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:ubfred:18783

DOI: 10.22004/ag.econ.18783

Access Statistics for this paper

More papers in Discussion Papers from University of Bonn, Institute for Food and Resource Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().