THE ALMOST IDEAL DEMAND SYSTEM APPLIED TO AGRICULTURAL TRACTORS IN MEXICO

Authors

  • Nicolás Morales-Carrillo
  • Miguel A. Martínez-Damián

Keywords:

Demand, tractors, price index, econometrics models

Abstract

In order to compare the effects on the estimators of the Almost Ideal Demand System, when the Stone price index (the one traditionally used) or the Divisia index are used, monthly sales of farm tractors in México were analyzed. The results showed that the model using the Divisia index was better because it does not change the estimators when the measuring scale of the price of one of the goods, is modified. Furthermore, the results indicated that the demand for tractors from 80 to 100 horse power is inelastic and that the market is demanding tractors with higher power.

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Published

30-06-1998

Issue

Vol. 32 No. 2 (1998): 1998-abr-jun

Section

Socioeconomics

License

Agrociencia is published every 45 days, in an English format, and it is edited by the Colegio de Postgraduados. Mexico-Texcoco highway Km. 36.5, Montecillo, Texcoco, Estado de México, CP 56264, Telephone (52) 5959284427. www.colpos.mx. Editor-in-Chief: Dr. Fernando Carlos Gómez Merino. Rights Reserved for Exclusive Use: 04-2021-031913431800-203, e-ISSN: 2521-9766, granted by the National Institute for Author Right.