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Aids Versus Rotterdam: A Cox Nonnested Test With Parametric Bootstrap

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  • Dameus, Alix
  • Brorsen, B. Wade
  • Sukhdial, Kullapapruk Piewthongngam
  • Richter, Francisca G.-C.

Abstract

A Cox nonnested test with parametric bootstrap is developed to select between the linearized version of the First Difference Almost Ideal Demand System (FDAIDS) and the Rotterdam model. The Cox test with parametric bootstrap is expected to be more powerful than the various orthodox tests used in past research. The new approach is then used for U. S. meat demand (beef, pork, and chicken) and compared to results obtained with an orthodox test. The orthodox test gives inconsistent results. In contrast, under the same varied conditions, the Cox test with parametric bootstrap consistently indicates that the Rotterdam model is preferred to the FDAIDS.

Suggested Citation

  • Dameus, Alix & Brorsen, B. Wade & Sukhdial, Kullapapruk Piewthongngam & Richter, Francisca G.-C., 2001. "Aids Versus Rotterdam: A Cox Nonnested Test With Parametric Bootstrap," 2001 Annual meeting, August 5-8, Chicago, IL 20453, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea01:20453
    DOI: 10.22004/ag.econ.20453
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    References listed on IDEAS

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    Cited by:

    1. Kaitibie, Simeon & Nganje, William E. & Brorsen, B. Wade & Epplin, Francis M., 2003. "Optimal Grazing Pressure Under Output Price And Production Uncertainty With Alternative Functional Forms," 2003 Annual meeting, July 27-30, Montreal, Canada 22020, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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