Endogeneity and Fruit Vegetable Demand in the Philippines
- 서동주(Tongjoo Suh) 김태후(Taehoo Kim)
- 농업경영·정책연구 48권 2호
- 등재여부 : KCI등재
- 218 - 236 (19 pages)
In this paper, QUAIDS analysis was carried out to examine the demand system of vegetables in the Philippines, with casting light on the endogenous issues for a more rigorous discussion. As a result of comparing the model controlling for the endogeneity and the model without controlling for the endogeneity, the percent difference between elasticities of two models was shown up to 187%. This result suggests that price and expenditure endogeneities have a significant influence on estimates in the demand system, and the result implies that this may lead to inconsistent estimates when demand analysis does not control for endogeneity.