DEMAND FOR MEAT AND FISH PRODUCTS IN KOREA



Both Equation (13) and Equation (14) were estimated for the Korean meat and fish
products. In Equation (13), the estimated value of
φ is 1.2193, with a standard error of 0.0829.
The p-value of
φ is 0.0001. In Equation (14), the estimated value of λ is 0.0221, with a standard
error of 0.0097. The p-value of
λ is 0.0237. The p-value of φ is less than that of λ in the test,
indicating that the LA/AIDS fits better for the Korean meat and fish industry than the Rotterdam
model.

Endogeneity of the Expenditure Variable

One concern is whether the expenditure variable in the model is exogenous. If the
expenditure variable is exogenous, the seemingly unrelated regression (SUR) estimator is
efficient for estimating parameters of the model by enforcing homogeneity and symmetric
restrictions in estimation. The adding-up condition is imposed by dropping one equation in the
system. When the expenditure variable in the model is endogenous, it is correlated with the
random error term, so the SUR estimator is no longer an unbiased estimator (Edgerton). In this
case, the three-stage least squares (3SLS) estimator is consistent for estimating the demand
system. To test endogeneity of the expenditure variable, the Hausman test suggested by
LaFrance was used.

The Hausman test statistic is

(15)           m = T(θ * - θ) [Var(θ^*) - Var(θ^)]"1(θ^ * - θ^),

which has a chi-square distribution with degrees of freedom equal to the number of unknown
parameters in
θ . If m is larger than the critical value, then the null hypothesis of exogeneity is
rejected.

10



More intriguing information

1. Can genetic algorithms explain experimental anomalies? An application to common property resources
2. A Rare Presentation of Crohn's Disease
3. CONSIDERATIONS CONCERNING THE ROLE OF ACCOUNTING AS INFORMATIONAL SYSTEM AND ASSISTANCE OF DECISION
4. The Importance of Global Shocks for National Policymakers: Rising Challenges for Central Banks
5. Co-ordinating European sectoral policies against the background of European Spatial Development
6. Implementation of the Ordinal Shapley Value for a three-agent economy
7. Recognizability of Individual Creative Style Within and Across Domains: Preliminary Studies
8. LAND-USE EVALUATION OF KOCAELI UNIVERSITY MAIN CAMPUS AREA
9. The growing importance of risk in financial regulation
10. The name is absent
11. HOW WILL PRODUCTION, MARKETING, AND CONSUMPTION BE COORDINATED? FROM A FARM ORGANIZATION VIEWPOINT
12. SLA RESEARCH ON SELF-DIRECTION: THEORETICAL AND PRACTICAL ISSUES
13. Epistemology and conceptual resources for the development of learning technologies
14. Regulation of the Electricity Industry in Bolivia: Its Impact on Access to the Poor, Prices and Quality
15. AN EMPIRICAL INVESTIGATION OF THE PRODUCTION EFFECTS OF ADOPTING GM SEED TECHNOLOGY: THE CASE OF FARMERS IN ARGENTINA
16. The name is absent
17. The magnitude and Cyclical Behavior of Financial Market Frictions
18. The name is absent
19. The name is absent
20. The name is absent