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Over-simplification and tractability in quasi-linear neg models

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Abstract

An inconsistency is found in the demand side of the NEG models developed in Pflüger (2004) that follows from the absence of a non-negativity constraint on the consumption of agricultural goods. This seriously weakens the results of the original paper and those of ensuing contributions in Pflüger and Südekum (2008a,b). A solution to this problem is developed which imposes severe restrictions on the relative size of two of the core model parameters, the implications of which are examined.
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hal-03461777 , version 1 (01-12-2021)

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Sylvain Barde, John Pierson. Over-simplification and tractability in quasi-linear neg models. 2009. ⟨hal-03461777⟩
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