IDEAS home Printed from
   My bibliography  Save this article

Impact of Income on Price and Income Responses in the Differential Demand System


  • Brown, Mark G.


An extension of the Rotterdam model is developed that makes the model’s income flexibility and marginal propensities to consume varying coefficients. Frisch’s duality relationships that the second partial derivatives of demand with respect to income and prices are independent of the order of differentiation are imposed with the marginal propensities to consume specified as functions of income and price, and the Slutsky coefficients specified as functions of income only. A uniform substitute specification is used to analyze the conditional demands for a group of beverages.

Suggested Citation

  • Brown, Mark G., 2008. "Impact of Income on Price and Income Responses in the Differential Demand System," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(2), pages 1-16, August.
  • Handle: RePEc:ags:joaaec:47201
    DOI: 10.22004/ag.econ.47201

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Bouis, Howarth E., 1996. "A food demand system based on demand for characteristics: If there is 'curvature' in the Slutsky matrix, what do the curves look like and why?," Journal of Development Economics, Elsevier, vol. 51(2), pages 239-266, December.
    2. Brown, Mark G. & Behr, Robert M. & Lee, Jonq-Ying, 1994. "Conditional Demand And Endogeneity? A Case Study Of Demand For Juice Products," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(1), pages 1-12, July.
    3. Henry W. Kinnucan & Yuqing Zheng, 2004. "Advertising's effect on the market demand elasticity: A note," Agribusiness, John Wiley & Sons, Ltd., vol. 20(2), pages 181-188.
    4. Mountain, Dean C, 1988. "The Rotterdam Model: An Approximation in Variable Space," Econometrica, Econometric Society, vol. 56(2), pages 477-484, March.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Hyeyoung Kim & Marisa Zansler & Lisa A. House, 2018. "Retail promotion with price cut and the imperfect price responses of orange juice demand in the U.S," Agribusiness, John Wiley & Sons, Ltd., vol. 34(2), pages 363-376, March.
    2. Xin Xu & Jayachandran N Variyam & Zhenxiang Zhao & Frank J Chaloupka, 2014. "Relative Food Prices and Obesity in U.S. Metropolitan Areas: 1976-2001," PLOS ONE, Public Library of Science, vol. 9(12), pages 1-22, December.
    3. Fleischer, Aliza & Peleg, Gil & Rivlin (Byk), Judith, 2011. "The impact of changes in household vacation expenditures on the travel and hospitality industries," Tourism Management, Elsevier, vol. 32(4), pages 815-821.
    4. Brown, Mark G., 2010. "Relationship between the Unemployment Rate and the Demand for Orange Juice," Research papers 104353, Florida Department of Citrus.
    5. Kim, Hyeyoung & Zansler, Marisa & House, Lisa A., 2016. "The imperfect price responses of orange juice demand in the U.S," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235511, Agricultural and Applied Economics Association.
    6. Adrian R. Fleissig, 2016. "Changing Trends in U.S. Alcohol Demand," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 44(3), pages 263-276, September.
    7. Brown, Mark G. & Lee, Jonq-Ying, 2011. "Some Further Discussion on the Price Index for The Almost Ideal Demand System: A Chain Price Index Approach," Research papers 121588, Florida Department of Citrus.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:joaaec:47201. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.