Two-Stage Utility Maximization and Import Demand Systems Revisited: Limitations and an Alternative

Autor:	George C. Davis, Kimberly L. Jensen
Jazyk:	angličtina
Rok vydání:	1994
Předmět:	conditional elasticities import demand two-stage maximization unconditional elasticities weak separability Agriculture
Zdroj:	Journal of Agricultural and Resource Economics, Vol 19, Iss 2, Pp 409-424 (1994)
Druh dokumentu:	article
ISSN:	1068-5502 2327-8285
DOI:	10.22004/ag.econ.30757
Popis:	Two-stage utility maximization theory has been widely used in the literature to estimate import demand for agricultural commodities that are often inputs. This article examines the overlooked conceptual and empirical limitations of applying two-stage utility maximization theory to model the demand for imported commodities that are inputs. A discussion is presented about how the underutilized theory of two-stage profit maximization overcomes these limitations. Also discussed are the conditions under which errors illustration of the two-stage profit maximization procedure is provided.
Databáze:	Directory of Open Access Journals
Externí odkaz:	https://doaj.org/article/45d5581e9e4a4ee88eb77a286baf9eb9 Zobrazit plný text záznamu View record in DOAJ