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An Error Correction Inverse Almost Ideal Demand System: Wholesale Demand for Fish Grades in Greece

Author

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  • Stathis Klonaris

    (Agricultural Economics and Rural Development Department, Agricultural University of Athens)

Abstract

Inverse demand systems explain price variations as functions of quantity variations. This paper presents a dynamic inverse AIDS model based on recent developments on cointegration techniques and error correction model. The case of fish landed at Geek sea ports appears to suit this model well. The results indicate that the underlying distance function is homothetic while the own-quantity flexibilities suggest that the responses of price to own-quantity changes are inelastic. Finally, the results of cross-quantity uncompensated flexibilities suggest that the substitution possibilities among fish grades are rather limited. The Allais interaction intensities verified the substitutability among fish grades as well.

Suggested Citation

  • Stathis Klonaris, 2009. "An Error Correction Inverse Almost Ideal Demand System: Wholesale Demand for Fish Grades in Greece," Working Papers 2009-07, Agricultural University of Athens, Department Of Agricultural Economics.
    • Handle: RePEc:aua:wpaper:2009-07
    as

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    References listed on IDEAS

    as
    1. Anderson, G J & Blundell, R W, 1982. "Estimation and Hypothesis Testing in Dynamic Singular Equation Systems," Econometrica, Econometric Society, vol. 50(6), pages 1559-1571, November.
    2. 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.
    3. Gordon Anderson & Richard Blundell, 1983. "Testing Restrictions in a Flexible Dynamic Demand System: An Application to Consumers' Expenditure in Canada," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 50(3), pages 397-410.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Inverse demand systems; AIDS; error correction model; Fish demand; Greece;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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