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Applying Theil's Multinomial Extension of the Linear Logit Model to Meat Expenditure Data

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  • Ronald Bewley
  • Trevor Young

Abstract

One of the chief drawbacks of the multinomial extension of the linear logit model is that, after the standard linearization, the parameters which are directly estimated have no obvious economic meaning. This paper presents alternative transformations which facilitate interpretation. In one linearization the estimated coefficients will be elasticities at a selected data point such as the mean. In another form, the coefficients will be Slutsky parameters. The latter version is chosen for an empirical analysis of the demand for meat in Great Britain. A number of issues concerning the model's error structure and dynamic specification are discussed.

Suggested Citation

  • Ronald Bewley & Trevor Young, 1987. "Applying Theil's Multinomial Extension of the Linear Logit Model to Meat Expenditure Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(1), pages 151-157.
    • Handle: RePEc:oup:ajagec:v:69:y:1987:i:1:p:151-157.
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    Cited by:

    1. Abderraouf Laajimi & Boubaker Dhehibi & José Maria Gil, 2003. "The structure of food demand in Tunisai: a differential system approach," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 66, pages 55-77.
    2. Angulo, Ana Maria & Mtimet, Nadhem & Gil, Jose Maria, 2008. "Análisis de la demanda de alimentos en España considerando el impacto de la dieta sobre la salud," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 8(02), pages 1-28.
    3. Eales, James & Veeman, Michele & Fulton, Joan, 1993. "Canadian Demand for Meats," Project Report Series 232377, University of Alberta, Department of Resource Economics and Environmental Sociology.
    4. Dhehibi, Boubaker & Gil, Jose Maria & Angulo, Ana Maria, 2003. "Nutrient Effects On Consumer Demand: A Panel Data Approach," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25881, International Association of Agricultural Economists.
    5. James S. Eales & Laurian J. Unnevehr, 1988. "Demand for Beef and Chicken Products: Separability and Structural Change," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(3), pages 521-532.
    6. Lachaal, Lassaad & Chebil, Ali & Dhehibi, Boubaker, 2005. "Measuring factor substitution and technological change in the Tunisian agricultural sector, 1971 - 2000," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 6(2), pages 1-11.
    7. Kesavan, Thulasiram, 1988. "Monte Carlo experiments of market demand theory," ISU General Staff Papers 198801010800009854, Iowa State University, Department of Economics.
    8. Considine, Timothy J., 2018. "Estimating concave substitution possibilities with non-stationary data using the dynamic linear logit demand model," Economic Modelling, Elsevier, vol. 72(C), pages 22-30.
    9. Rosegrant, Mark W. & Kasryno, Faisal & Perez, Nicostrato D., 1998. "Output response to prices and public investment in agriculture: Indonesian food crops," Journal of Development Economics, Elsevier, vol. 55(2), pages 333-352, April.
    10. Phimister, Euan & Roberts, Deborah, 2002. "The Effect of Off-farm Work on Production Intensity and Output Structure," Workshop on the Farm Household-Firm Unit: Its Importance in Agriculture and Implications for Statistics, April 12-13,2002, Wye Campus, Imperial College 15718, International Agricultural Policy Reform and Adjustment Project (IAPRAP).
    11. A. Gracia & J. M. Gil & A. M. Angulo, 1998. "Spanish food demand: a dynamic approach," Applied Economics, Taylor & Francis Journals, vol. 30(10), pages 1399-1405.
    12. Ana Angulo & Fernando Lopèz & Jèsus Mur, 2011. "Seemingly Unrelated Regressions with Spatial Effects. An Application to the Case of the European Regional Employment," ERSA conference papers ersa10p487, European Regional Science Association.
    13. Reed, Albert J. & Levedahl, J. William & Clark, J. Stephen, 2003. "Commercial Disappearance and Composite Demand for Food with an Application to U.S. Meats," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(1), pages 1-18, April.
    14. Burton, Michael & Young, Trevor, 1990. "Changes in Consumer Preferences For Meat in Great Britain: Non-Parametric and Parametric Analysis," Manchester Working Papers in Agricultural Economics 232820, University of Manchester, School of Economics, Agricultural Economics Department.

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