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Application of the Least Absolute Value Technique as a Data Filter for Detecting Structural Change in the Demand for Meat

Published online by Cambridge University Press:  10 May 2017

John F. Yanagida  and
Don N. Book
John F. Yanagida
Affiliation:
Department of Agricultural Economics, University of Nevada, Reno
Don N. Book
Affiliation:
Department of Agricultural Economics, University of Nevada, Reno
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Extract

In agricultural commodity modeling, the time period since 1973 has presented estimation problems due to sudden large increases in product and input prices. Among factors contributing to these price increases are the 1973 oil embargo, grain trade with the Soviet Union and decreased yields for some crops due to severe weather conditions. The presence of such extreme values (i.e., large price increases) can obviously affect modeling results when deriving such relationships as supply equations or demand equations.

Type
Articles
Information
Journal of the Northeastern Agricultural Economics Council , Volume 13 , Issue 1 , April 1984 , pp. 7 - 11
Copyright
Copyright © Northeastern Agricultural and Resource Economics Association 

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Footnotes

Research funding was provided by Hatch Project 231. This article is a contribution of the Nevada Agricultural Experiment Station, Journal Series No. 622.

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