IDEAS home Printed from https://ideas.repec.org/a/ags/ijag24/346834.html
   My bibliography  Save this article

Comparison of Rotterdam Model versus almost ideal demand system for fish and red meat

Author

Listed:
  • Sherafatmand, Habibeh
  • Baghestany, Ali Akbar

Abstract

The Rotterdam and the almost ideal demand systems (AIDS) are often used to model consumer demand system. The present study determined which model performed better in recovering the true elasticities of consumer demand for red meat and fish. For the linearised AIDS model, Stone, Paasche, Laspeyres, and Turnquist price indexes were used. This study also compared the results of the linearised AIDS and the full nonlinear AIDS (NLAIDS) models. According to Lutkepohl, normality test for joint residuals, the linearised AIDS model that used Turnquist price index, was the best system and, based on the Akaike criteria, the linear approximate (LA) AIDS outperformed NLAIDS. The results of the non-nested test for LAAIDS versus Rotterdam showed that LAAIDS is more appropriate for red meat and fish demand in Iran. Price elasticity for fish and red meat showed that they are elastic. Cross elasticity from LAAIDS and NLAIDS showed that fish and red meat are substitutes. Allen-Uzawa elasticity results indicate that the two goods are strong substitutes. Income elasticity indicated that red meat and fish are considered to be luxury goods.

Suggested Citation

  • Sherafatmand, Habibeh & Baghestany, Ali Akbar, 2015. "Comparison of Rotterdam Model versus almost ideal demand system for fish and red meat," International Journal of Agricultural Sciences and Technology (IJAGST), SvedbergOpen, vol. 54(1), June.
    • Handle: RePEc:ags:ijag24:346834
    DOI: 10.22004/ag.econ.346834
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/346834/files/Comparison%20of%20Rotterdam%20Model%20versus%20almost%20ideal%20demand%20system%20for%20fish%20and%20red%20meat.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.346834?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ijag24:346834. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/inrapfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.