FUNCTIONAL FORMS AND THE DEMAND FOR MEAT IN THE UNITED STATES.

Many studies have been made on the demand function for meat, often using two functional forms. The first is the linear formulation in which the quantity demanded is assumed to be a linear function of the explanatory variables. The second is the logarithmic formulation in which all the variables are...

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Publicado en:Review of Economics & Statistics Vol. 59; no. 3; pp. 355 - 360
Autor principal: Hui-shyong Chang
Formato: Artículo
Publicado: MIT Press Aug77
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      aug:
        au: Hui-shyong Chang
      su:
        Economic demand
        Meat
        Meat industry
        Demand function
        Estimation theory
        Mathematical functions
        Mathematics
        Supply & demand
        Mathematical variables
        United States
      sug:
        subj:
          United States
          Economic demand
          Meat
          Meat industry
          Demand function
          Estimation theory
          Mathematical functions
          Mathematics
          Supply & demand
          Mathematical variables
      ab: Many studies have been made on the demand function for meat, often using two functional forms. The first is the linear formulation in which the quantity demanded is assumed to be a linear function of the explanatory variables. The second is the logarithmic formulation in which all the variables are transformed into the log form. Since there is no a priori rationale for the choice of one or the other form, choice between the two is often difficult. In addition, the use of one form or the other might have implications that are either highly restrictive or inconsistent with theoretical considerations or actual experience. The purpose of this paper is to adopt a more general functional form for the demand for meat and use the maximum likelihood method to estimate parameters in the general form. The linear and log formulations will also be examined. In the next section, the general functional form and the estimation approach will be introduced. Empirical results will be presented in the third section. In the last section, a brief summary and conclusion will be given.
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    language: English
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