n Agrekon - Choosing between the AIDS and Rotterdam models : a meat demand analysis case study

Volume 45, Issue 2
  • ISSN : 0303-1853
  • E-ISSN: 2078-0400
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Due to the inability of economic theory to choose ex ante between the Almost Ideal Demand System (AIDS) and the Rotterdam model, a non-nested test was used. The results of the non-nested test points to the Linearized-AIDS model applied to 31 years of meat consumption data in South Africa. When comparing the estimated demand relations of the two models, the LA/AIDS model also proved to be a better fit for South African meat demand.

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