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Maximum Likelihood Estimation Of A Random Coefficient Meat Demand System

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  • Hahn, William F.

Abstract

The paper demonstrates that random coefficient models can be estimated by maximum likelihood if they are specified as generalized least squares models. The paper uses maximum likelihood estimation on a random-coefficient, meat-demand system. Statistical tests show that price elasticities are random, but expenditure elasticities are not. The statistical tests allow one to count the number of factors that cause randomness without requiring one to know what they are. There appear to be only two factors that make the price elasticities random.

Suggested Citation

  • Hahn, William F., 2001. "Maximum Likelihood Estimation Of A Random Coefficient Meat Demand System," 2001 Annual meeting, August 5-8, Chicago, IL 20573, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea01:20573
    DOI: 10.22004/ag.econ.20573
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    File URL: https://ageconsearch.umn.edu/record/20573/files/sp01ha02.pdf
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    References listed on IDEAS

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    1. Chalfant, James A & Alston, Julian M, 1988. "Accounting for Changes in Tastes," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 391-410, April.
    2. Giancarlo Moschini & Daniele Moro & Richard D. Green, 1994. "Maintaining and Testing Separability in Demand Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(1), pages 61-73.
    3. Hahn, William F., 1994. "A Random Coefficient Meat Demand Model," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 45(3), pages 1-10.
    4. Keller, W.J. & Van Driel, J., 1985. "Differential consumer demand systems," European Economic Review, Elsevier, vol. 27(3), pages 375-390.
    5. Barten, A. P. & Bettendorf, L. J., 1989. "Price formation of fish : An application of an inverse demand system," European Economic Review, Elsevier, vol. 33(8), pages 1509-1525, October.
    6. Alston, Julian M. & Chalfant, James A., 1991. "Can We Take The Con Out Of Meat Demand Studies?," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(01), pages 1-13, July.
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    Cited by:

    1. Femenia, Fabienne, 2019. "A Meta-Analysis of the Price and Income Elasticities of Food Demand," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 68(2), June.

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    Keywords

    Demand and Price Analysis;

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