Meat Demand Analysis with a Quota-Constrained Translog (QCTL) Model: Implication of Market Liberalization In Korean Beef Imports

This paper provides an econometric model to illustrate the impact of reforms on the beef import policy on Korean meat demand, by constructing a Quota-Constrained Translog Model (QCTL). It provides econometric estimates of own and cross price elasticities, expenditure elasticities as well as quota elasticities for five classes of meat products. We also demonstrated theoretically, the likely bias Chat may arise from omitting the quota constraint in demand estimation. The econometric estimation of elasticities used monthly data from January 1991 to December 1997. Results indicated statistical significance of the quota constraint and income growth on Korean meat demand.