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A Uniform Substitute Demand Model with Varying Coefficients

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  • Brown, Mark G.
  • Lee, Jong-Yinq

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.

Suggested Citation

  • Brown, Mark G. & Lee, Jong-Yinq, 2000. "A Uniform Substitute Demand Model with Varying Coefficients," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 32(1), pages 1-9, April.
    • Handle: RePEc:cup:jagaec:v:32:y:2000:i:01:p:1-9_02
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    Cited by:

    1. 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.
    2. Andrew Muhammad & Terrill R. Hanson, 2009. "The importance of product cut and form when estimating fish demand: the case of U.S. Catfish," Agribusiness, John Wiley & Sons, Ltd., vol. 25(4), pages 480-499.
    3. Okrent, Abigail M. & Alston, Julian M., 2011. "Demand for Food in the United States: A Review of Literature, Evaluation of Previous Estimates, and Presentation of New Estimates of Demand," Monographs, University of California, Davis, Giannini Foundation, number 251908, December.
    4. 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.
    5. Brown, Mark G., 2006. "Impact of Income on Price and Income Responses in the Differential Demand System," Research papers 36836, Florida Department of Citrus.
    6. 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.

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