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Efficiency of correction for sample selection in QUAIDS models: an example for the fish demand in Germany

  • Julia BronnmannEmail author
  • Stefan Guettler
  • Jens-Peter Loy
Article

Abstract

This paper investigates the performance of the Quadratic Almost Ideal Demand System (QUAIDS) with and without accounting for the consistent two-step estimation for censoring of the dependent variable as well as the use of quality-adjusted prices. The demand systems are estimated for a commodity that has a relatively low consumption level in the German market, fish. Thus, the zero observations are quite high and the need of a correction procedure is more urgent. The results show differences in the applied methods. It turns out that ignoring consistent two-step estimation and quality-adjusted prices leads to less elastic demand estimates.

Keywords

Censored systems Food demand Price elasticities Shonkwiler and Yen procedure QUAIDS 

JEL Codes

C32 C33 D12 Q22 

Notes

Acknowledgement

The authors acknowledge financial support from the project “Kobe-Fisch” from the Bundesministerium für Bildung und Forschung, project no: 01UT1410. The authors would like to thank the anonymous referee and the Editor Robert Kunst for their helpful comments.

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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Department of Environmental, Resource and Ecological EconomicsChristian-Albrechts-University Kiel, Institute of EconomicsKielGermany
  2. 2.Department of Agricultural Market AnalysisChristian-Albrechts-University Kiel, Institute of Agricultural EconomicsKielGermany

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