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THE DEMAND FOR MILK IN AUSTRALIA ESTIMATION OF PRICE AND INCOME EFFECTS FROM THE 1984 HOUSEHOLD EXPENDITURE SURVEY*

THE DEMAND FOR MILK IN AUSTRALIA ESTIMATION OF PRICE AND INCOME EFFECTS FROM THE 1984 HOUSEHOLD... Cross‐sectional data are used to estimate a three‐equation generalised addilog demand system (GADS); two equations are used to express the demand for milk by method of sale and a residual equation is used to close the system. It is shown that, as the average budget share of the residual equation approaches unity, the GADS equations for the incomplete system are approximately equivalent to double logarithmic equations. It is found that aggregate milk demand is relatively insensitive to both price and income, but the degree of substitution between delivered and non‐delivered milk is both large and highly significant. A new test for influential data in the system context is developed and it suggests that the reported results are robust to variations in the sample space. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Australian Journal of Agricultural Resource Economics Wiley

THE DEMAND FOR MILK IN AUSTRALIA ESTIMATION OF PRICE AND INCOME EFFECTS FROM THE 1984 HOUSEHOLD EXPENDITURE SURVEY*

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References (5)

Publisher
Wiley
Copyright
Copyright © 1987 Wiley Subscription Services, Inc., A Wiley Company
ISSN
1364-985X
eISSN
1467-8489
DOI
10.1111/j.1467-8489.1987.tb00465.x
Publisher site
See Article on Publisher Site

Abstract

Cross‐sectional data are used to estimate a three‐equation generalised addilog demand system (GADS); two equations are used to express the demand for milk by method of sale and a residual equation is used to close the system. It is shown that, as the average budget share of the residual equation approaches unity, the GADS equations for the incomplete system are approximately equivalent to double logarithmic equations. It is found that aggregate milk demand is relatively insensitive to both price and income, but the degree of substitution between delivered and non‐delivered milk is both large and highly significant. A new test for influential data in the system context is developed and it suggests that the reported results are robust to variations in the sample space.

Journal

The Australian Journal of Agricultural Resource EconomicsWiley

Published: Dec 1, 1987

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