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Incomplete Demand Systems And Semilogarithmic Demand Models

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  • Jeffrey T. LaFrance

Abstract

The methodology of LaFrance and Hanemann for analysing the structure of incomplete demand systems is applied to models that are linear or logarithmic in quantities, prices and/or income. The structure of each model is presented when the implications of consumer choice theory are satisfied. The usefulness of the approach is illustrated. It is shown that considerable prior information is obtained from the theory of consumer choice when it is applied to this set of functional forms for demand equations.

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File URL: http://hdl.handle.net/10.1111/j.1467-8489.1990.tb00697.x
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Bibliographic Info

Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.

Volume (Year): 34 (1990)
Issue (Month): 2 (08)
Pages: 118-131

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Handle: RePEc:bla:ajarec:v:34:y:1990:i:2:p:118-131

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References

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  1. Epstein, L, 1975. "A Disaggregate Analysis of Consumer Choice under Uncertainty," Econometrica, Econometric Society, vol. 43(5-6), pages 877-92, Sept.-Nov.
  2. Burt, Oscar R & Brewer, Durward, 1971. "Estimation of Net Social Benefits from Outdoor Recreation," Econometrica, Econometric Society, vol. 39(5), pages 813-27, September.
  3. LaFrance, Jeffrey T., 1985. "Linear demand functions in theory and practice," Journal of Economic Theory, Elsevier, vol. 37(1), pages 147-166, October.
  4. Currie, John Martin & Murphy, John A & Schmitz, Andrew, 1971. "The Concept of Economic Surplus and its Use in Economic Analysis," Economic Journal, Royal Economic Society, vol. 81(324), pages 741-99, December.
  5. Safyurtlu, A. N. & Johnson, Stanley R. & Hassan, Zuhair A., 1986. "Recent Evidence on Market Demand Systems for Food in Canada," Staff General Research Papers 1110, Iowa State University, Department of Economics.
  6. Bewley, Ronald A., 1987. "The Demand For Milk In Australia Estimation Of Price And Income Effects From The 1984 Household Expenditure Survey," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 31(03), December.
  7. Theil, Henri, 1971. "An Economic Theory of the Second Moments of Disturbances of Behavioral Equations," American Economic Review, American Economic Association, vol. 61(1), pages 190-94, March.
  8. Hausman, Jerry A, 1981. "Exact Consumer's Surplus and Deadweight Loss," American Economic Review, American Economic Association, vol. 71(4), pages 662-76, September.
  9. Richardson, Robert A., 1976. "Structural Estimates Of Domestic Demand For Agricultural Products In Australia: A Review," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 44(03), September.
  10. William J. Martin & Darrell Porter, 1985. "Testing For Changes In The Structure Of The Demand For Meat In Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 29(1), pages 16-31, 04.
  11. Jeffrey T. LaFrance, 1986. "The Structure of Constant Elasticity Demand Models," Development Research Unit Working Paper Series archive-28, Monash University, Department of Economics.
  12. Alston, Julian M. & Chalfant, James A., 1987. "Weak Separability And A Test For The Specification Of Income In Demand Models With An Application To The Demand For Meat In Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 31(01), April.
  13. G. W. Taylor, 1963. "Meat Consumption In Australia," The Economic Record, The Economic Society of Australia, vol. 39(85), pages 81-87, 03.
  14. Jeffrey T. LaFrance & Harry D. Gorter, 1985. "Regulation in a Dynamic Market: The U.S. Dairy Industry," Development Research Unit Working Paper Series archive-34, Monash University, Department of Economics.
  15. Fisher, Brian S., 1979. "The Demand For Meat - An Example Of An Incomplete Commodity Demand System," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 23(03), December.
  16. Labys, Walter C., 1976. "An International Comparison Of Price And Income Elasticities For Wine Consumption," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 20(01), April.
  17. A. N. Safyurtlu & S. R. Johnson & Z. A. Hassan, 1986. "Recent Evidence on Market Demand Systems For Food in Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 34(3), pages 475-493, November.
  18. Huang, Kuo S & Haidacher, Richard C, 1983. "Estimation of a Composite Food Demand System for the United States," Journal of Business & Economic Statistics, American Statistical Association, vol. 1(4), pages 285-91, October.
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