Addressing Pre-Commitment Bias with a Generalized EASI Model: An Application to Food Demand in Russia

Journal of Agricultural and Resource Economics

关键词: demand system;    generalized easi model;    pre-committed demand;   

DOI  :  10.22004/ag.econ.281314

来源: DOAJ

【 摘 要 】

The Exact Affine Stone Index (EASI) demand model offers distinct advantages over its predecessors. However, it does not account for pre-committed demand. This can bias elasticity estimates when such pre-commitments are present. We derive a generalized EASI model that allows for pre-committed demand. We illustrate the advantage of this model in an empirical analysis of food demand in Russia using provincial-level panel data. The results provide strong empirical evidence for the presence of pre-committed demand for key food commodities. The findings extend the literature on food demand in Russia by estimating elasticities that account for pre-commitments and unobserved regional heterogeneity.

【 授权许可】

Unknown