Bayesian Estimation of a Censored Linear Almost Ideal Demand System: Food Demand in Pakistan: American Journal of Agricultural Economics

P. Kasteridis; S. T. Yen; C. Fang

Bayesian Estimation of a Censored Linear Almost Ideal Demand System: Food Demand in Pakistan: American Journal of Agricultural Economics

P. Kasteridis, S. T. Yen, C. Fang

Centre for Health Economics

Research output: Contribution to journal › Article › peer-review

Abstract

A censored linear almost ideal demand system for food is estimated with a Bayesian Markov chain Monte Carlo procedure, using a sample of urban households from Pakistan. All own-price elasticities but one are found to be negative, and all total food expenditure elasticities are found to be positive, with a high posterior probability. There is a mix of gross complements and substitutes among the food products, while net substitution is the predominant pattern. Household characteristics play a role in food expenditures, and regional differences exist. These demand elasticities can inform policy deliberations by the national government and international organizations.

Original language	English
Pages (from-to)	1374-1390
Number of pages	17
Journal	American Journal of Agricultural Economics
Volume	93
Issue number	5
Publication status	Published - Oct 2011

Keywords

censoring demand elasticities gibbs sampling laids mcmc pakistan c11 c34 d12 non-negativity constraints binding nonnegativity constraints equation models coherency regression

Cite this

@article{06872e82767a46c8add647fc2787827d,

title = "Bayesian Estimation of a Censored Linear Almost Ideal Demand System: Food Demand in Pakistan: American Journal of Agricultural Economics",

abstract = "A censored linear almost ideal demand system for food is estimated with a Bayesian Markov chain Monte Carlo procedure, using a sample of urban households from Pakistan. All own-price elasticities but one are found to be negative, and all total food expenditure elasticities are found to be positive, with a high posterior probability. There is a mix of gross complements and substitutes among the food products, while net substitution is the predominant pattern. Household characteristics play a role in food expenditures, and regional differences exist. These demand elasticities can inform policy deliberations by the national government and international organizations.",

keywords = "censoring demand elasticities gibbs sampling laids mcmc pakistan c11 c34 d12 non-negativity constraints binding nonnegativity constraints equation models coherency regression",

author = "P. Kasteridis and Yen, {S. T.} and C. Fang",

year = "2011",

month = oct,

language = "English",

volume = "93",

pages = "1374--1390",

journal = "American Journal of Agricultural Economics",

issn = "0002-9092",

publisher = "John Wiley & Sons Inc.",

number = "5",

}

TY - JOUR

T1 - Bayesian Estimation of a Censored Linear Almost Ideal Demand System: Food Demand in Pakistan

T2 - American Journal of Agricultural Economics

AU - Kasteridis, P.

AU - Yen, S. T.

AU - Fang, C.

PY - 2011/10

Y1 - 2011/10

N2 - A censored linear almost ideal demand system for food is estimated with a Bayesian Markov chain Monte Carlo procedure, using a sample of urban households from Pakistan. All own-price elasticities but one are found to be negative, and all total food expenditure elasticities are found to be positive, with a high posterior probability. There is a mix of gross complements and substitutes among the food products, while net substitution is the predominant pattern. Household characteristics play a role in food expenditures, and regional differences exist. These demand elasticities can inform policy deliberations by the national government and international organizations.

AB - A censored linear almost ideal demand system for food is estimated with a Bayesian Markov chain Monte Carlo procedure, using a sample of urban households from Pakistan. All own-price elasticities but one are found to be negative, and all total food expenditure elasticities are found to be positive, with a high posterior probability. There is a mix of gross complements and substitutes among the food products, while net substitution is the predominant pattern. Household characteristics play a role in food expenditures, and regional differences exist. These demand elasticities can inform policy deliberations by the national government and international organizations.

KW - censoring demand elasticities gibbs sampling laids mcmc pakistan c11 c34 d12 non-negativity constraints binding nonnegativity constraints equation models coherency regression

M3 - Article

SN - 0002-9092

VL - 93

SP - 1374

EP - 1390

JO - American Journal of Agricultural Economics

JF - American Journal of Agricultural Economics

IS - 5

ER -