Price and quantity endogeneity in demand analysis: evidence from directed acyclic graphs

abstract

• We propose to use the emerging method of directed graphs to study price/quantity endogeneity issues in empirical demand analysis. The approach is illustrated through the examination of U.S. meat consumption. We find that for two major meat products (beef and poultry), retail prices contemporaneously caused quantities consumed, thus were predetermined. In contrast, the quantity consumed of pork appeared to be predetermined relative to its price. 2006 International Association of Agricultural Economists.

authors

• Bessler, David

published proceedings

• AGRICULTURAL ECONOMICS

author list (cited authors)

• Wang, Z. J., & Bessler, D. A.

citation count

• 14

complete list of authors

• Wang, ZJ||Bessler, DA

publication date

• January 2006

publisher

• Wiley  Publisher

published in

• Agricultural Economics  Journal

keywords

• Directed Graphs
• Endogeneity Testing
• Meat Demand

Digital Object Identifier (DOI)

• 10.1111/j.1574-0862.2006.00106.x

start page

• 87

end page

• 95

volume

• 34

issue

• 1

URL

• http%3A%2F%2Fdx.doi.org%2F10.1111%2Fj.1574-0862.2006.00106.x