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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, Cambridge University Press, vol. 34(1), pages 17-26, April.
    • Handle: RePEc:cup:jagaec:v:34:y:2002:i:01:p:17-26_00
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    Cited by:

    1. 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.
    2. Brown, Mark G., 2006. "Impact of Income on Price and Income Responses in the Differential Demand System," Research papers 36836, Florida Department of Citrus.
    3. 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.
    4. 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.
    5. Chung, Rebecca H. & Lee, Jonq-Ying & Brown, Mark G., 1998. "Incorporating Nutrients in Food Demand Analysis," Research papers 52824, Florida Department of Citrus.
    6. 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.
    7. 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.
    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.

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