@article{Washington:15070, recid = {15070}, author = {Washington, Andrew A. and Kilmer, Richard L.}, title = {THE PRODUCTION THEORY APPROACH TO IMPORT DEMAND ANALYSIS: A COMPARISON OF THE ROTTERDAM MODEL AND THE DIFFERENTIAL PRODUCTION APPROACH}, journal = {Journal of Agricultural and Applied Economics}, address = {2002-12}, number = {1379-2016-113438}, pages = {3}, year = {2002}, abstract = {Results indicate that, when comparing the unconditional derived-demand elasticities to the unconditional consumer demand elasticities, significant differences emerge due to the differences in the first-stage estimation procedure between the differential production approach and the Rotterdam model. In comparing the consumer demand price/corss-price elasticities to the derived-demand price/cross-price elasticities, it is clear that use of the Rotterdam model when a production approach should be used can lead to overestimation, underestimation, and incorrect signs in deriving unconditional price effects.}, url = {http://ageconsearch.umn.edu/record/15070}, doi = {https://doi.org/10.22004/ag.econ.15070}, }