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Uniform Substitutes When Group Preferences are Blockwise Dependent

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  • Seale, James L., Jr.

Abstract

This paper extends the uniform substitutes model developed by Theil (1980) in a block independent framework to one derived in a blockwise dependent framework. The approach is developed in the case of the demand for different brands of the same good. The uniform substitutes preference structure is nested under weakly separable preferences and the restrictions can be tested statistically with a log likelihood ratio test. Conditional expenditure and price elasticities are derived for uniform substitutes.

Suggested Citation

  • Seale, James L., Jr., 2003. "Uniform Substitutes When Group Preferences are Blockwise Dependent," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 35(Supplemen), pages 1-5.
    • Handle: RePEc:ags:joaaec:43274
    DOI: 10.22004/ag.econ.43274
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    References listed on IDEAS

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    1. BARTEN, Anton P., 1969. "Maximum likelihood estimation of a complete system of demand equations," LIDAM Reprints CORE 34, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Barten, A. P., 1969. "Maximum likelihood estimation of a complete system of demand equations," European Economic Review, Elsevier, vol. 1(1), pages 7-73.
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    Cited by:

    1. 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.

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