Calibration of incomplete demand systems in quantitative analysis

John C. Beghin, Jean Christophe Bureau, Sophie Drogué

Research output: Contribution to journalArticlepeer-review

5 Scopus citations

Abstract

An easily implemented and flexible calibration technique for partial demand systems is introduced, combining recent developments in incomplete demand systems and a set of restrictions conditioned on the available elasticity estimates. The technique accommodates various degrees of knowledge on cross-price elasticities, satisfies curvature restrictions, and allows the recovery of an exact welfare measure for policy analysis. The technique is illustrated with a partial demand system for food consumption in Korea for different states of knowledge on cross-price effects. The consumer welfare impact of food and agricultural trade liberalization is measured.

Original languageEnglish (US)
Pages (from-to)839-847
Number of pages9
JournalApplied Economics
Volume36
Issue number8
DOIs
StatePublished - May 10 2004
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics

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