A Multi-Stage Almost Ideal Demand System: the case of beef demand in Colombia

The main objective in this paper is to obtain reliable long-term and short-term elasticities estimates of the beef demand in Colombia using quarterly data since 1998 until 2007. However, complexity on the decision process of consumption should be taken into account, since expenditure on a particular...

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Autores:
Ramírez Hassan, Andrés
Tipo de recurso:
Fecha de publicación:
2012
Institución:
Universidad EAFIT
Repositorio:
Repositorio EAFIT
Idioma:
eng
OAI Identifier:
oai:repository.eafit.edu.co:10784/537
Acceso en línea:
http://hdl.handle.net/10784/537
Palabra clave:
Delta Method
Generalized Method of Mo- ment
Monte Carlo Simulation
Beef Demand
Elasticities
Multi-Stage Almost Ideal Demand System
Rights
License
Acceso abierto
id REPOEAFIT2_2d60b22593725100a696174f2dc855db
oai_identifier_str oai:repository.eafit.edu.co:10784/537
network_acronym_str REPOEAFIT2
network_name_str Repositorio EAFIT
repository_id_str
dc.title.eng.fl_str_mv A Multi-Stage Almost Ideal Demand System: the case of beef demand in Colombia
title A Multi-Stage Almost Ideal Demand System: the case of beef demand in Colombia
spellingShingle A Multi-Stage Almost Ideal Demand System: the case of beef demand in Colombia
Delta Method
Generalized Method of Mo- ment
Monte Carlo Simulation
Beef Demand
Elasticities
Multi-Stage Almost Ideal Demand System
title_short A Multi-Stage Almost Ideal Demand System: the case of beef demand in Colombia
title_full A Multi-Stage Almost Ideal Demand System: the case of beef demand in Colombia
title_fullStr A Multi-Stage Almost Ideal Demand System: the case of beef demand in Colombia
title_full_unstemmed A Multi-Stage Almost Ideal Demand System: the case of beef demand in Colombia
title_sort A Multi-Stage Almost Ideal Demand System: the case of beef demand in Colombia
dc.creator.fl_str_mv Ramírez Hassan, Andrés
dc.contributor.author.none.fl_str_mv Ramírez Hassan, Andrés
dc.subject.keyword.eng.fl_str_mv Delta Method
Generalized Method of Mo- ment
Monte Carlo Simulation
Beef Demand
Elasticities
Multi-Stage Almost Ideal Demand System
topic Delta Method
Generalized Method of Mo- ment
Monte Carlo Simulation
Beef Demand
Elasticities
Multi-Stage Almost Ideal Demand System
description The main objective in this paper is to obtain reliable long-term and short-term elasticities estimates of the beef demand in Colombia using quarterly data since 1998 until 2007. However, complexity on the decision process of consumption should be taken into account, since expenditure on a particular good is sequential. In the case of beef demand in Colom- bia, a Multi-Stage process is proposed based on an Almost Ideal Demand System (AIDS). The econometric novelty in this paper is to estimate si- multaneously all the stages by the Generalized Method of Moments to obtain a joint covariance matrix of parameters estimates in order to use the Delta Method for calculating the standard deviation of the long-term elasticities estimates. Additionally, this approach allows us to get elastic- ities estimates in each stage, but also, total elasticities which incorporates interaction between stages. On the other hand, the short-term dynamic is handled by a simultaneous estimation of the Error Correction version of the model; therefore, Monte Carlo simulation exercises are performed to analyse the impact on beef demand because of shocks at di erent levels of the decision making process of consumers. The results indicate that, although the total expenditure elasticity estimate of demand for beef is 1.78 in the long-term and the expenditure elasticity estimate within the meat group is 1.07, the total short-term expenditure elasticity is merely 0.03. The smaller short-term reaction of consumers is also evidenced on price shocks; while the total own price elasticity of beef is -0.24 in the short-term, the total and within meat group long-term elasticities are - 1.95 and -1.17, respectively.
publishDate 2012
dc.date.issued.none.fl_str_mv 2012-10-22
dc.date.available.none.fl_str_mv 2013-03-08
2013-03-07T20:09:11Z
dc.date.accessioned.none.fl_str_mv 2013-03-07T20:09:11Z
dc.type.eng.fl_str_mv workingPaper
info:eu-repo/semantics/workingPaper
dc.type.coarversion.fl_str_mv http://purl.org/coar/version/c_b1a7d7d4d402bcce
dc.type.coar.fl_str_mv http://purl.org/coar/resource_type/c_8042
dc.type.local.spa.fl_str_mv Documento de trabajo de investigación
dc.type.hasVersion.eng.fl_str_mv draft
dc.identifier.uri.none.fl_str_mv http://hdl.handle.net/10784/537
url http://hdl.handle.net/10784/537
dc.language.iso.eng.fl_str_mv eng
language eng
dc.rights.coar.fl_str_mv http://purl.org/coar/access_right/c_abf2
dc.rights.local.spa.fl_str_mv Acceso abierto
rights_invalid_str_mv Acceso abierto
http://purl.org/coar/access_right/c_abf2
dc.coverage.spatial.eng.fl_str_mv Medellín de: Lat: 06 15 00 N degrees minutes Lat: 6.2500 decimal degrees Long: 075 36 00 W degrees minutes Long: -75.6000 decimal degrees
institution Universidad EAFIT
bitstream.url.fl_str_mv https://repository.eafit.edu.co/bitstreams/5438d400-aaf4-4550-a3e5-05d4f4da7a25/download
https://repository.eafit.edu.co/bitstreams/5fd0a03a-da2f-462b-9396-1c4fafedc71d/download
bitstream.checksum.fl_str_mv 498ff08441f92028e45a93d7d82b2e32
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repository.name.fl_str_mv Repositorio Institucional Universidad EAFIT
repository.mail.fl_str_mv repositorio@eafit.edu.co
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spelling Medellín de: Lat: 06 15 00 N degrees minutes Lat: 6.2500 decimal degrees Long: 075 36 00 W degrees minutes Long: -75.6000 decimal degrees2013-03-082013-03-07T20:09:11Z2012-10-222013-03-07T20:09:11Zhttp://hdl.handle.net/10784/537The main objective in this paper is to obtain reliable long-term and short-term elasticities estimates of the beef demand in Colombia using quarterly data since 1998 until 2007. However, complexity on the decision process of consumption should be taken into account, since expenditure on a particular good is sequential. In the case of beef demand in Colom- bia, a Multi-Stage process is proposed based on an Almost Ideal Demand System (AIDS). The econometric novelty in this paper is to estimate si- multaneously all the stages by the Generalized Method of Moments to obtain a joint covariance matrix of parameters estimates in order to use the Delta Method for calculating the standard deviation of the long-term elasticities estimates. Additionally, this approach allows us to get elastic- ities estimates in each stage, but also, total elasticities which incorporates interaction between stages. On the other hand, the short-term dynamic is handled by a simultaneous estimation of the Error Correction version of the model; therefore, Monte Carlo simulation exercises are performed to analyse the impact on beef demand because of shocks at di erent levels of the decision making process of consumers. The results indicate that, although the total expenditure elasticity estimate of demand for beef is 1.78 in the long-term and the expenditure elasticity estimate within the meat group is 1.07, the total short-term expenditure elasticity is merely 0.03. The smaller short-term reaction of consumers is also evidenced on price shocks; while the total own price elasticity of beef is -0.24 in the short-term, the total and within meat group long-term elasticities are - 1.95 and -1.17, respectively.engA Multi-Stage Almost Ideal Demand System: the case of beef demand in ColombiaworkingPaperinfo:eu-repo/semantics/workingPaperDocumento de trabajo de investigacióndrafthttp://purl.org/coar/version/c_b1a7d7d4d402bccehttp://purl.org/coar/resource_type/c_8042Acceso abiertohttp://purl.org/coar/access_right/c_abf2Delta MethodGeneralized Method of Mo- mentMonte Carlo SimulationBeef DemandElasticitiesMulti-Stage Almost Ideal Demand SystemRamírez Hassan, Andrésaramir21@eafit.edu.coORIGINAL2012-12 Andres Ramirez Hassan.pdf2012-12 Andres Ramirez Hassan.pdfapplication/pdf962524https://repository.eafit.edu.co/bitstreams/5438d400-aaf4-4550-a3e5-05d4f4da7a25/download498ff08441f92028e45a93d7d82b2e32MD51LICENSElicense.txtlicense.txttext/plain; charset=utf-81748https://repository.eafit.edu.co/bitstreams/5fd0a03a-da2f-462b-9396-1c4fafedc71d/download8a4605be74aa9ea9d79846c1fba20a33MD5210784/537oai:repository.eafit.edu.co:10784/5372024-03-05 14:06:23.405open.accesshttps://repository.eafit.edu.coRepositorio Institucional Universidad EAFITrepositorio@eafit.edu.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