Estimating a Demand System with Nonnegativity Constraints: Mexican Meat Demand

Amos Golan · Jeffrey M. Perloff · Edward Z. Shen

131 citations0/0 files storedThe Review of Economics and Statistics

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Economics of Agriculture and Food Markets Consumer Market Behavior and Pricing Economic and Environmental Valuation

Abstract

A new information-based approach for estimating systems of many equations with nonnegativity constraints is presented. This approach, called generalized maximum entropy (GME), is more practical and efficient than traditional maximum-likelihood methods. The GME method is used to estimate an almost ideal demand system for five types of meat using cross-sectional data from Mexico, where most households did not buy at least one type of meat during the survey week. The system of demands is shown to vary across demographic groups.

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1980An Almost Ideal Demand System 1993What do we Learn About Consumer Demand Patterns from Micro Data 1990Demand Systems Estimation With Microdata: A Censored Regression Approach 1983Estimation of consumer demand systems with binding non-negativity constraints 1992Demand System Specification and Estimation 1986Microeconometric Demand System with Binding Nonnegativity Constraints: The Dual Approach 1989Modeling the Pattern of Structural Change in U.S. Meat Demand 1984Statistical models for zero expenditures in household budgets

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2004Food Demand in Mexico: An Application of the Amemiya‐Tobin Approach to the Estimation of a Censored Food System 2006A Sample Selection Approach to Censored Demand Systems 2016How Meat Demand Elasticities Vary with Price, Income, and Product Category 2012LA ELASTICIDAD INGRESO DEL CONSUMO CULTURAL EN CALI

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