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THE CONSTANT DIFFERENCE OF ELASTICITIES FUNCTION WITH APPLICATIONS TO THE EC ANIMAL FEED SECTOR

 

作者: Y. Surry,  

 

期刊: Journal of Agricultural Economics  (WILEY Available online 1993)
卷期: Volume 44, issue 1  

页码: 110-125

 

ISSN:0021-857X

 

年代: 1993

 

DOI:10.1111/j.1477-9552.1993.tb00254.x

 

出版商: Blackwell Publishing Ltd

 

数据来源: WILEY

 

摘要:

Unlike those flexible functional forms which are local approximations, the ‘Constant Difference of Elasticities’ (CDE) function is globally well‐behaved. Due to its properties and parsimony in the number of parameters, the CDE functional form offers many potential applications. Two empirical applications are presented. First, aggregate CDE input demand functions are specified and estimated econometrically for the feed concentrate markets in Denmark, Ireland and the United Kingdom. The second empirical application illustrates how a matrix of compensated price elasticities can be obtained with only a priori knowledge of its direct and diagonal elements. The suggested approach exploits some of the properties of the Allen elasticities of substitution associated with the CDE functional

 

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