New PDF release: Agricultural Household Modelling and Family Economics


ISBN-10: 044481969X

ISBN-13: 9780444819697

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Additional resources for Agricultural Household Modelling and Family Economics

Example text

T h e tests proposed in the preceding analysis could be used to choose the g o o d s for which a d e m a n d system using instrumental variables should be estimated. 2 - Hypotheses of a priori separability W h e n w e have data describing consumption and production at the s a m e t i m e , it is possible to simplify a priori the structure of the model in introducing the hypothesis of separability. This method is quite c o m m o n in microeconomics. , 1986). This hypothesis allows for an easier estimation while the main effects of production could be included in the d e m a n d equations through a "profit effect".

T h e critical region of t h e test is Ψ={ξΝ case ζΝ 2 2 = NR ] where R > χ]_α (1 -k)}. In our specific is obtained f r o m t h e regression of ü by the variables of Z . W e get an impression of the "contribution" of the various columns of Ζ t o the rejection of H0 by examining t h e Student statistics f o r t h e different instrumental variables in the regression. Total expenditure exogeneity test Consider a simultaneous equation m o d e l : Y = Di α + Xi b + w. with / = 7 t o Ν. Y. is t h e vector of dependent variables f o r observation / , 7> is total expenditure, t h e exogeneity of which w e test, and X.

Institut National de Recherche Scientifique, Butare, Republique Rwandaise. The Role of Production Decisions in Modelling the Consumption Patterns... /39 Annex 1a. 3) 40/Agncultural Household Modelling and Family Economics Annex 1b. 1) (1196) The Role of Production Decisions in Modelling the Consumption Patterns.. J41 Annex 1c. 4) (1536) 42/AgHcultural Household Modelling and Family Economics Annex 1 d . 3) The Role of Production Decisions in Modelling the Consumption Patterns... /43 Annex 2. Formula of the tests Test of the instrumental variables Consider Y t h e vector of dependent variable observations (N observations), X the matrix of the k vectors of explanatory variables (the rank of X is k), Ζ t h e matrix of the / instrumental variables.

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Agricultural Household Modelling and Family Economics by FRANCE CAILLAVET, HERVÉ GUYOMARD and ROBERT LIFRAN (Eds.)

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