AIDS VERSUS THE ROTTERDAM DEMAND SYSTEM: A COX TEST WITH PARAMETRIC BOOTSTRAP

A Cox 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. A Cox test with parametric bootstrap has been shown to be more powerful than encompassing tests like those used in past research. The bootstrap approach is used with U.S. meat demand (beef, pork, chicken, fish) and compared to results obtained with an encompassing test. The Cox test with parametric bootstrap consistently indicates the Rotterdam model is preferred to the FDAIDS, while the encompassing test sometimes fails to reject FDAIDS.


Issue Date:
2002-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/31126
Published in:
Journal of Agricultural and Resource Economics, Volume 27, Number 2
Page range:
335-347
Total Pages:
13




 Record created 2017-04-01, last modified 2017-08-24

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