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Consumer Price Formation with Demographic Translating

  • Piggott, Nicholas E.
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    We investigate how to theoretically and empirically incorporate demographic translating in consumer distance functions. Consumer distance functions yield inverse demand systems that are of interest when attempting to better understand questions of price formation. Translating procedures are important when incorporating pre-committed quantities, pre-allocated factors, or demographic variables (e.g., advertising, health or food safety information) in the inverse demand system. Examples are included for illustrative purposes.

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    File URL: http://purl.umn.edu/25252
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    Paper provided by International Association of Agricultural Economists in its series 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia with number 25252.

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    Date of creation: 2006
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    Handle: RePEc:ags:iaae06:25252
    Contact details of provider: Web page: http://www.iaae-agecon.org/
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    1. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
    2. Schroeder, Ted C. & Lusk, Jayson L., 2002. "Effects of Meat Recalls on Futures Market Prices," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 31(1), April.
    3. Eales, James S. & Unnevehr, Laurian J., 1994. "The inverse almost ideal demand system," European Economic Review, Elsevier, vol. 38(1), pages 101-115, January.
    4. Nicholas E. Piggott & Thomas L. Marsh, 2004. "Does Food Safety Information Impact U.S. Meat Demand?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 154-174.
    5. Pollak, Robert A & Wales, Terence J, 1981. "Demographic Variables in Demand Analysis," Econometrica, Econometric Society, vol. 49(6), pages 1533-51, November.
    6. Bollino, Carlo Andrea, 1987. "Gaids: a generalised version of the almost ideal demand system," Economics Letters, Elsevier, vol. 23(2), pages 199-202.
    7. Holt, Matthew T & Goodwin, Barry K, 1997. "Generalized Habit Formation in an Inverse Almost Ideal Demand System: An Application to Meat Expenditures in the U.S," Empirical Economics, Springer, vol. 22(2), pages 293-320.
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