Albert J. Reed

The Generalized Composite Commodity Theorem and Food Demand Estimation

This article reports tests of aggregation over consumer food products and estimates of aggregate food demand elasticities. Evidence that food demand variables follow unit root processes leads us to build on and simplify existing tests of the Generalized Composite Commodity Theorem. We compute food demand elasticities using a method of cointegration that is shown to apply to a convenient but nonlinear functional form. Estimates are based on consumer reported expenditure data rather than commercial disappearance data.

A Bootstrap Estimator for Dynamic Optimization Models

We propose a technique for computing parameter estimates of dynamic and stochastic programming problems for which boundary conditions must be imposed. We demonstrate the feasibility of the technique by computing and interpreting the estimates of a dynamic food price margin model using secondary economic time series data.