Hostname: page-component-cb9f654ff-9knnw Total loading time: 0 Render date: 2025-08-28T01:22:58.346Z Has data issue: false hasContentIssue false
  • English
  • Français

Testing for Aggregation and Simultaneous Bias in U.S. Soybean Export Equations

Published online by Cambridge University Press:  05 September 2016

Carlos A. Arnade  and
Cecil W. Davison
Carlos A. Arnade
Affiliation:
Agriculture and Trade Analysis Division and Commodity Economics Division, ERS, U.S. Department of Agriculture
Cecil W. Davison
Affiliation:
Agriculture and Trade Analysis Division and Commodity Economics Division, ERS, U.S. Department of Agriculture
Get access Rights & Permissions [Opens in a new window]

Abstract

Most previous estimates of elasticities of export demand for U.S. soybeans have emanated from single import equations subject to aggregation and simultaneous equation bias. This analysis tests U.S. soybean export data for aggregation and simultaneous equation bias and divides the aggregate data into six market equations to reduce these biases. Elasticity estimates from the six equations are compared with elasticity estimates from single equation OLS and 2SLS estimations using the same aggregate data. Results suggest that distortions from unjustified 2SLS estimation may exceed those from aggregation bias.

Keywords

aggregation biassimultaneous equation biassoybean exportsprice elasticitymarket share

Information

Type
Submitted Articles
Information
Journal of Agricultural and Applied Economics , Volume 21 , Issue 2 , December 1989 , pp. 129 - 137
Copyright
Copyright © Southern Agricultural Economics Association 1989

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Article purchase

Temporarily unavailable

References

Anderson, M. U.S. Soybean Trade and Exchange Rate Volatility. Technical Bulletin No. 1748. USDA, ERS, Oct. 1988.Google Scholar
Central Bank of China (The). Financial Statistics. Taiwan District, The Republic of China, March 1988.Google Scholar
Chambers, R.G., and Just, R.E.. “Effects of Exchange Rate Changes on U.S. Agriculture: A Dynamic Analysis.” Amer. J. Agr. Econ., 63(1981):32–46.CrossRefGoogle Scholar
Chow, G.C. Econometrics. New York: McGraw-Hill Book Co., 1983.Google Scholar
Conway, R.K. “An Examination of the ‘Schuh Controversy’: Is the Demand for U.S. Agricultural Exports Elastic?” Applied Economics, 19(1987):853–873.Google Scholar
Council for Economic Planning and Development. Taiwan Statistical Data Book. Republic of China, 1987.Google Scholar
Davison, C.W. “Market Shares of World Trade in Corn, Soybeans, and Wheat.” World Agriculture Situation and Outlook Report. USDA, ERS, Oct. 1988, pp. 11–20.Google Scholar
Deaton, A. and Muellbauer, J.. Economics and Consumer Behavior. New York: Cambridge University Press, 1980.Google Scholar
Food and Agriculture Organization of the United Nations. Production Yearbooks. 1961-1986. Rome.Google Scholar
Gardiner, W.H., and Dixit, P.M.. Price Elasticity of Demand: Concepts and Estimates. FAER-228. USDA, ERS, Feb. 1987.Google Scholar
Greenshields, B.L. Changes in Exchange Rates, Impact on U.S. Grain and Soybean Exports to Japan. USDA, ERS-Foreign 364, July 1974.Google Scholar
Helmberger, P.G., and Akinyosoye, V.. “Competitive Pricing and Storage Under Uncertainty with an Application to the U.S. Soybean Market.” Amer. J. Agr. Econ., 66(1984):119–130.CrossRefGoogle Scholar
Houck, J.P., and Mann, J.S.. An Analysis of Domestic and Foreign Demand for U.S. Soybeans and Soybean Products. University of Minnesota Agricultural Experiment Station Technical Bulletin 256,1968.Google Scholar
Houck, J.P., Ryan, M.E., and Subotnik, A.. Soybeans and Their Products. Minneapolis: University of Minnesota Press, 1972.Google Scholar
International Monetary Fund. International Financial Statistics 1988 Yearbook. Washington, DC, 1988.Google Scholar
Judge, G.G., Griffiths, W.E., Hill, R.C., Lutkephol, H., and Lee, T.C.. The Theory and Practice of Econometrics. New York: John Wiley and Sons, 1985.Google Scholar
Knipscheer, H.C., Hill, L.D., and Dixon, B.L.. “Demand Elasticities for Soybean Meal in the European Community.” Amer. J. Agr. Econ., 64(1982):249–253.Google Scholar
Leuck, D.J. “Analysis of the Feed-Livestock Sector of the European Community.” Staff Report No. AGES840529. USDA, ERS, Jan. 1985.Google Scholar
Meyers, W.H., Gerber, E.J., and Bredahl, M.E.. “The Effect of Price-Insulating Policies on Exchange Rate Analysis.” Agr. Econ. Res., 32(1980):25–30.Google Scholar
Stallings, D. “Trade-Weighted Value of the Dollar.” Agricultural Outlook. AO-146. USDA, ERS, Oct. 1988, pp. 21–23.Google Scholar
United Nations. Commodity Trade Statistics, 1962-1987.Google Scholar
Wu, D.M. “Alternative Tests of Independence Between Stochastic Regressors and Disturbances.” Econometrica, 41(1973):733–750.Google Scholar
Zellner, A. “An Efficient Method of Estimating Seemingly Unrelated Regressions and Tests for Aggregation Bias.” J. Amer. Stat. Assoc, 57(1962):348–368.CrossRefGoogle Scholar