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A Uniform Substitute Demand Model with Varying Coefficients

Published online by Cambridge University Press:  28 April 2015

Mark G. Brown  and
Jong-Yinq Lee
Mark G. Brown
Affiliation:
Economic and Market Research Department, Florida Department of Citrus, University of Florida, 2129 McCarty Hall, PO. Box 110249, Gainesville, Rorida 32611-0249, Telephone: (352) 392-1874, Fax:, (352)392-8634, E-Mail: [email protected]; [email protected]
Jong-Yinq Lee
Affiliation:
Economic and Market Research Department, Florida Department of Citrus, University of Florida, 2129 McCarty Hall, PO. Box 110249, Gainesville, Rorida 32611-0249, Telephone: (352) 392-1874, Fax:, (352)392-8634, E-Mail: [email protected]; [email protected]
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Abstract

This study extends Batten's synthetic demand modeling approach to increase the flexibility of the uniform substitute specification of the Rotterdam demand system. Marginal propensities to consume (MPC) vary with budget shares and Slutsky coefficients are defined in terms of varying MPCs. An application of the model to orange-juice products shows that the pattern of income and price elasticities over time is much different than when MPCs are restricted to be constant.

Keywords

Demandvarying coefficientRotterdam modelorange juice
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 32 , Issue 1 , April 2000 , pp. 1 - 9
Copyright
Copyright © Southern Agricultural Economics Association 2000

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