A SYMMETRIC APPROACH TO CANADIAN MEAT DEMAND ESTIMATION

Variability in published meat demand elasticity estimates for Canada motivates examining the importance of dynamics and endogeneity of right-hand-side variables. Wickens and Breusch suggest a re-parameterization of dynamics which allows estimating the long-run parameters directly and maintains linearity. A symmetric approach, employing both ordinary and inverse demand systems, to endogeneity of right-hand-side variables is used. Endogeneity of both prices and quantities is examined. Results show both dynamics and endogeneity are important in quarterly Canadian meat demand.