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Restrictions On The Effects Of Preference Variables In The Rotterdam Model

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  • Brown, Mark G.
  • Lee, Jonq-Ying

Abstract

This study examines imposing and testing restrictions on preference variables in the Rotterdam model through the impacts of these variables on marginal utilities. An empirical analysis of the impact of a female labor force participation variable in a Rotterdam demand system for fresh fruit illustrates the methodology. This variable was modeled through its impact on marginal utilities via "adjusted" prices, following theoretical work by Basmann and Barten, among others. Results show that the female labor participation has negatively impacted the demands for citrus, while positively impacting the demands for other fresh fruit.

Suggested Citation

  • Brown, Mark G. & Lee, Jonq-Ying, 2002. "Restrictions On The Effects Of Preference Variables In The Rotterdam Model," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(01), pages 1-10, April.
    • Handle: RePEc:ags:joaaec:15519
    DOI: 10.22004/ag.econ.15519
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    References listed on IDEAS

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    1. Barnett, William A., 1984. "On the flexibility of the Rotterdam model : A first empirical look," European Economic Review, Elsevier, vol. 24(3), pages 285-289, April.
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    Cited by:

    1. Brown, Mark G., 2006. "Impact of Income on Price and Income Responses in the Differential Demand System," Research papers 36836, Florida Department of Citrus.
    2. Hoehn, John P. & Deaton, Brady J., Jr., 2004. "The Welfare Consequences Of Certified Labeling For Credence Attributes," Staff Paper Series 11758, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    3. Chung, Rebecca H. & Lee, Jonq-Ying & Brown, Mark G., 1998. "Incorporating Nutrients in Food Demand Analysis," Research papers 52824, Florida Department of Citrus.
    4. Valdez-Lafarga, Octavio & Schmitz, Troy, 2016. "A Country-Differentiated Import Demand Model for Fresh Tomatoes in the United States: an Estimation of Price and Income Elasticities for 1991 through 2014," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235807, Agricultural and Applied Economics Association.
    5. Thomas H. Spreen & Richard L. Kilmer & Carlos R. Pitta, 2007. "Nonhomogeneous products and the law of one price," Agribusiness, John Wiley & Sons, Ltd., vol. 23(3), pages 407-420.
    6. Hoehn, John P. & Deaton, Brady J., Jr., 2003. "Information As A Double-Edged Sword: The Economic And Welfare Consequences Of Certified Labeling For Credence Attributes," Staff Paper Series 11762, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    7. William A. Barnett & Isaac Kalonda Kanyama, 2013. "Time-varying parameters in the almost ideal demand system and the Rotterdam model: will the best specification please stand up?," Applied Economics, Taylor & Francis Journals, vol. 45(29), pages 4169-4183, October.
    8. 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.
    9. William A. Barnett & Isaac Kalonda Kanyama, 2013. "Time-varying parameters in the almost ideal demand system and the Rotterdam model: will the best specification please stand up?," Applied Economics, Taylor & Francis Journals, vol. 45(29), pages 4169-4183, October.
    10. Iqbal Sarah & Fayaz Muhammad & Ullah Irfan & Uçak Harun & Shah Syed Attaullah & Sayam Farheen, 2023. "Examining Fruit Demand Elasticities In Pakistan," Folia Oeconomica Stetinensia, Sciendo, vol. 23(2), pages 150-168, December.

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    Keywords

    Demand and Price Analysis;

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