Samuelson's Full Duality and the Use of Directed Acyclical Graphs Academic Article uri icon

abstract

  • To date, mixed demand systems have been all but ignored in empirical work. A possible reason for the scarcity of such applications is that one needs to know a priori which prices and quantities are endogenous in the mixed demand system. By using a directed acyclical graph (DAG), causal relationships among price and quantity variables are identified giving rise to a causally identified mixed demand system. A statistical comparison is made of the traditional Rotterdam model, a synthetic demand system, which subsumes the traditional Rotterdam model, and a Rotterdam mixed demand system identified through the use of a DAG. In this analysis, the respective demand systems consist of five products: steak, ground beef, beef roasts, pork, and chicken.

published proceedings

  • Journal of Applied Economics

author list (cited authors)

  • Stockton, M. C., Capps, O., & Bessler, D. A.

citation count

  • 2

complete list of authors

  • Stockton, Matthew C||Capps, Oral||Bessler, David A

publication date

  • May 2008