European Review of Agriculture Economics Vol 28 (3) (2001) pp.349-370
© 2001 Oxford University Press and the Foundation for the European Review of Agricultural Economics
Estimation and inference in cointegrated demand systems: an application to Tunisian meat consumption
University of Zaragoza, Zaragoza, Spain
Unidad de Economía Agraria, SIA-DGA, Zaragoza, Spain
Summary
In this paper, a new framework for estimating and identifying cointegrated demand systems is presented. This method is then applied to the analysis of meat demand in Tunisia with an almost ideal demand system functioning as the underlying model. The Johansen and Juselius approach is used to identify cointegrated vectors as demand equations and to test theoretical economic restrictions. Finally, a structural vector autoregressive model is specified and impulse response functions are calculated to analyse both long- and short-run dynamics of demand elasticities.
Keywords: almost ideal demand system, cointegration, meat demand, Tunisia, long-run identification, impulse response functions