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Abstract
This article extends the literature on time series estimation of U.S. consumer
demand by presenting a coherent theoretical structure with a multi-period planning
horizon for consumer choice and a more general treatment of the aggregation
problem that allows the possibility that consumers' tastes change over time
and vary across individuals. Based on our theoretical model, an econometric model
is used to obtain estimates in a multi-period context of U.S. demand for imported
foods and domestically produced foods. The hypothesis that current purchases
depend on expected future prices is supported by the empirical results for imported
foods.