Title: Canadian Beef Demand Elasticity Study - Final report
Abstract: A quarterly, weakly-separable, Quadratic, Almost Ideal Demand System is estimated for beef, pork and chicken in Canada. The restrictions that would lead to the less exible Almost Ideal Demand System were rejected at the ve per cent level. Results for the rst stage model (of the two-stage budgeting process implied by weak separability) indicated that demand for the meat group is inelastic, with an own-price elasticity of -0.24. Demand for beef in Canada was inelastic during the period under study. The conditional, uncompensated own-price elasticity of demand was -0.83, while the unconditional, uncompensated elasticity of demand for beef was -0.43. The latter was almost identical to the estimate reported by Tonsor et al (2011) for the U.S. (and based on a dierent model). Demand for beef in Canada appeared to become more inelastic prior to discovery of BSE in Canada, but since then beef demand has become less inelastic, although the change is subtle.
Publication Year: 2012
Publication Date: 2012-01-01
Language: en
Type: article
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