Model choice and structural specification for Canadian meat consumption

Choice of functional form and structural change specification may each influence demand parameter estimates. Joint non-nested testing of both is applied for the linearised almost ideal and Rotterdam models with and without structural change, incorporated using a gradual transition specification. The test of model choice without structural change is inconclusive; the test of models with structural change shows that, for Canadian meat consumption, the gradual-transition almost ideal model is preferred over the gradual-transition Rotterdam model. The effect of functional form on demand elasticities for meats is relatively minor, but the structural change provision substantially affects these estimates.