A UNIFORM SUBSTITUTE DEMAND MODEL WITH VARYING COEFFICIENTS

This study extends Barten'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.


Issue Date:
2000-04
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/15403
Published in:
Journal of Agricultural and Applied Economics, Volume 32, Number 1
Page range:
1-9
Total Pages:
10




 Record created 2017-04-01, last modified 2017-08-23

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