USING THE BOX-COX FORM FOR ESTIMATING DEMAND: A COMMENT.

In a recent article in "Review of Economics and Statistics," economist, Hui-Shyong Chang used the form of function suggested by economists George E.P. Box and David R. Cox to estimate the demand for meat in the United States. This article indicates the constraints which this function places upon pri...

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Publicado en:Review of Economics & Statistics Vol. 62; no. 1; pp. 147 - 149
Autor principal: Gemmill, Gordon
Formato: Artículo
Publicado: MIT Press Feb80
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: USING THE BOX-COX FORM FOR ESTIMATING DEMAND: A COMMENT.
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        au: Gemmill, Gordon
        affil: City University Business School, London.
      su:
        Demand function
        Economic demand
        Meat industry
        Box, George E. P., 1919-2013
        Elasticity (Economics)
        Cox, David R.
        Empirical research
        Economic forecasting
        Economics
        United States
      sug:
        subj:
          United States
          Demand function
          Economic demand
          Meat industry
          Box, George E. P., 1919-2013
          Elasticity (Economics)
          Cox, David R.
          Empirical research
          Economic forecasting
          Economics
      ab: In a recent article in "Review of Economics and Statistics," economist, Hui-Shyong Chang used the form of function suggested by economists George E.P. Box and David R. Cox to estimate the demand for meat in the United States. This article indicates the constraints which this function places upon price and income elasticities, but which may, however, be removed by a slight generalization of the form. According to the author, the simple Box-Cox form imposes unreasonable constraints on the behavior of price and income elasticities. The generalization, in which price and income are raised to individual powers, is not so constrained. Moreover, it is interesting to note that of the four simple functions, introduced earlier as special cases of the generalized Box-Cox function, only the semi-logarithmic fulfills all of these elasticity conditions. This may account for its popularity in empirical work on the demand for food.
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    language: English
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