Explaining changes in Italian consumption of meat: Parametric and non-parametric analysis

Abstract

Lewbeis composite model for comparing the AIDS and Translog demand systems is estimated using Italian meat-consumption data. Preliminary non-parametric diagnoses suggest that exogenous shifters of price and expenditure need not be introducedinto a parametric model. By contrast, the parametric analysis demonstrates that demographic shifters can account for substantial changes in patterns of meat consumption. Although a parametric model without demographic variables performs adequately, likelihood ratio tests substantiate that an AIDS model with demographic variables performs even better