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The Structure of Food Demand: Interrelatedness and Duality

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  • Dale M. Heien

Abstract

This paper presents a new empirical demand system which mitigates the effects of multicollinearity while facilitating the measurement of interrelatedness. Duality theory is used to derive the inverse demand functions. Using data on fourteen food items a complete set of demand equations is estimated in both quantity and price dependent forms. The model is used to test for the theoretical restrictions of homogeneity, additivity and negativity, as well as the habit formation hypothesis. A comparison is made between these results and those of Brandow and George and King.

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  • Dale M. Heien, 1982. "The Structure of Food Demand: Interrelatedness and Duality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(2), pages 213-221.
    • Handle: RePEc:oup:ajagec:v:64:y:1982:i:2:p:213-221.
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    File URL: http://hdl.handle.net/10.2307/1241125
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    Cited by:

    1. Gempesaw, Conrado M., II & Dunn, Jerry W., 1987. "The Impact Of Higher Prices Of Nonfarm-Inputs To Food Processing And Distribution On Food Prices And Quantities," Journal of Food Distribution Research, Food Distribution Research Society, vol. 18(2), pages 1-13, September.
    2. Kesavan, Thulasiram, 1988. "Monte Carlo experiments of market demand theory," ISU General Staff Papers 198801010800009854, Iowa State University, Department of Economics.
    3. Okrent, Abigail M. & Alston, Julian M., 2011. "Demand for Food in the United States: A Review of Literature, Evaluation of Previous Estimates, and Presentation of New Estimates of Demand," Monographs, University of California, Davis, Giannini Foundation, number 251908, December.
    4. Dunn, James E. & Heien, Dale, 1985. "The Demand For Farm Output," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 10(1), pages 1-10, July.
    5. Young, Douglas L., 1982. "Relevance Of Duality Theory To The Practicing Agricultural Economist: Discussion," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 7(2), pages 1-6, December.
    6. Brester, Gary W. & Marsh, John M., 2001. "The Effects Of U.S. Meat Packing And Livestock Production Technologies On Marketing Margins And Prices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(2), pages 1-18, December.
    7. Heien, Dale & Pompelli, Greg, 1988. "The Demand For Beef Products: Cross-Section Estimation Of Demographic And Economic Effects," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 13(1), pages 1-8, July.
    8. P. Syrovátka & L. Grega, 2002. "Analysis of methodological approaches to evaluation of complementary and substitution relationships in consumer demand for food," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 48(10), pages 456-462.
    9. Marsh, John M. & Brester, Gary W., 1999. "Technological Change In The U.S. Beef And Pork Sectors: Impacts On Farm-Wholesale Marketing Margins And Livestock Prices," Research Discussion Papers 29242, Montana State University, Department of Agricultural Economics and Economics, Trade Research Center.
    10. Lee, Jonq-Ying, 1984. "Demand Interrelationships Among Fruit Beverages," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 16(2), pages 1-9, December.
    11. White, Fred C., 1987. "Distribution of Agricultural Research Impacts," Evaluating Agricultural Research and Productivity, Proceedings of a Workshop, Atlanta, Georgia, January 29-30, 1987, Miscellaneous Publication 52 50023, University of Minnesota, Agricultural Experiment Station.

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