[Substitutability between food imports and national agricultural supply. Experience of Italy, 1961-88]
1991
Rizzi, P.L.
The paper analyses Italian food imports in the framework of production theory. This technology considers four outputs, amongs which meals out of home, and three inputs including imports from the EEC. Using annual data for the period 1961-88, a static input demand system for inputs is derived from translog cost function whilst the data generating process is specified a first order autoregressive model with distributed lags. Results from this sample show that the general dynamic specification can be rejected in favour of the conventional static one. The model selected accepts the restrictions of demand theory but rejects hypotheses on the structure of technology such as homothetic separability and homogeneity in inputs and outputs. In the period 1961-88 food imports from the Community sustituted domestic agricultural production and this process was led by the increase in consumption of meals away from home
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