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Restrictions On The Effects Of Preference Variables In The Rotterdam Model

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  • Brown, Mark G.
  • Lee, Jonq-Ying
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    Abstract

    This study examines imposing and testing restrictions on preference variables in the Rotterdam model through the impacts of these variables on marginal utilities. An empirical analysis of the impact of a female labor force participation variable in a Rotterdam demand system for fresh fruit illustrates the methodology. This variable was modeled through its impact on marginal utilities via "adjusted" prices, following theoretical work by Basmann and Barten, among others. Results show that the female labor participation has negatively impacted the demands for citrus, while positively impacting the demands for other fresh fruit.

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    Bibliographic Info

    Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

    Volume (Year): 34 (2002)
    Issue (Month): 01 (April)
    Pages:

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    Handle: RePEc:ags:joaaec:15519

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    Web page: http://www.saea.org/jaae/jaae.htm
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    Related research

    Keywords: demand; demographic; fresh fruit; Rotterdam model; Demand and Price Analysis;

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    Cited by:
    1. Hoehn, John P. & Deaton, Brady J., Jr., 2003. "Information As A Double-Edged Sword: The Economic And Welfare Consequences Of Certified Labeling For Credence Attributes," Staff Papers 11762, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Mark Brown & Jonq-Ying Lee, 2008. "Impacts of the distribution of households across income groups in a differential demand system for orange juice," Empirical Economics, Springer, vol. 34(3), pages 567-584, June.
    3. Hoehn, John P. & Deaton, Brady J., Jr., 2004. "The Welfare Consequences Of Certified Labeling For Credence Attributes," Staff Papers 11758, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    4. William A. Barnett and Isaac Kalonda-Kanyama, 2013. "Time-Varying Parameter in the Almost Ideal Demand System and the Rotterdam Model: Will the Best Specification Please Stand Up?," Working Papers 335, Economic Research Southern Africa.
    5. Thomas H. Spreen & Richard L. Kilmer & Carlos R. Pitta, 2007. "Nonhomogeneous products and the law of one price," Agribusiness, John Wiley & Sons, Ltd., vol. 23(3), pages 407-420.
    6. William Barnett & Isaac Kalonda-Kanyama, 2012. "Time-Varying Parameters in the Almost Ideal Demand System and the Rotterdam Model: Will the Best Specication Please Stand Up?," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 201201, University of Kansas, Department of Economics, revised Feb 2012.

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