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THE DEMAND FOR MEAT — AN EXAMPLE OF AN INCOMPLETE COMMODITY DEMAND SYSTEM *
Author(s) -
Fisher Brian S.
Publication year - 1979
Publication title -
australian journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 0004-9395
DOI - 10.1111/j.1467-8489.1979.tb00245.x
Subject(s) - estimator , commodity , econometrics , price elasticity of demand , economics , logarithm , demand curve , elasticity (physics) , maximum likelihood , estimation , income elasticity of demand , cross elasticity of demand , function (biology) , microeconomics , mathematics , statistics , price elasticity of supply , mathematical analysis , management , evolutionary biology , market economy , biology , materials science , composite material
Equations describing the demand for beef and veal, mutton, lamb, pork and chicken are estimated using the full information maximum likelihood estimator. Elasticity estimates are presented and the double logarithmic model is compared with a demand system which is derived from the indirect translog utility function. Estimates of the direct price and income elasticities are not particularly sensitive to model specification but the estimated cross‐price elasticities are sensitive to the choice of functional form. The results indicate that the double logarithmic specification may be less satisfactory than the alternative presented in cases where restrictions on the parameters are imposed during estimation.