Agricultural Policy and Econometrics Assignment
Question: Need a QUAIDS estimation.
Estimating the QUAIDS model allows us to calculate the price- and income elasticity of the demand for meat. The price elasticity can be calculated using the Hicksian or compensated demand equation or by using the Marshallian uncompensated demand equation. Both elasticities are used to calculate changes in demand following a change in price. The difference is that the former only contains price effects while the latter also captures income effects.
Collect the necessary data from StatsCan.
Step 1: Estimated parameters of the QUAIDS model for Canadian meat consumption.
Step 2: Matrix of estimated Marshallian, uncompensated price elasticity for Canada.
Step 3: Matrix of estimated Hicksian, compensated price elasticity for Canada.
Step 4: Estimated income elasticity for Canada.