The estimation of demand equations provides the earliest example of the use
of statistical and econometric techniques on economic data. It is possible to identify
two distinct approaches to the estimation of demand equations. The first and
original approach concentrated on the demand for particular goods by paying
attention to any special characteristics of the single market involved. The second
approach involved simultaneous estimation of complete systems containing the
demand equations for every commodity group purchased by consumers. The
estimation of a complete system of demand equations in principle enables us to
obtain better estimates of each equation in the system than the first approach
because of interaction in the demand behavior of different commodities. This study
is directed towards the estimation of demand systems for agricultural products in
the OECD countries. Three representatives demand systems with their extensions,
namely the Rotterdam Model, An Almost Ideal Demand System (AIDS), and CBS
model are used. These models are estimated by Seemingly Unrelated Regression
(SUR) method. The procedures to estimate demand systems suggest significant
empirical regularities for agricultural products in the OECD countries. The main
contribution of this study is its procedure for model selection. This procedure
implies the superiority of AIDS and CBS models over the Rotterdam model.
| Identifer | oai:union.ndltd.org:METU/oai:etd.lib.metu.edu.tr:http://etd.lib.metu.edu.tr/upload/12604825/index.pdf |
| Date | 01 January 2003 |
| Creators | Erdil, Erkan |
| Contributors | Cakmak, Erol |
| Publisher | METU |
| Source Sets | Middle East Technical Univ. |
| Language | English |
| Detected Language | English |
| Type | Ph.D. Thesis |
| Format | text/pdf |
| Rights | To liberate the content for public access |
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