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Forms of Scale Curves and Differential Inverse Demand Systems

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  • Toshinobu Matsuda

Abstract

This article provides a new interpretation of the scale effects in differential inverse demand systems. A scale curve is defined as a curve that shows how the expenditure share of a good or service changes as the consumption level changes. It is shown that Brown, Lee, and Seale's synthetic model has the same scale effects as do the Box-Cox scale curves. In this light, their model is not a mere composite but a model in its own right. An empirical illustration given for Japanese fresh food demand suggests that the underlying scale curves differ from both linear and loglinear forms. Copyright 2005, Oxford University Press.

Suggested Citation

  • Toshinobu Matsuda, 2005. "Forms of Scale Curves and Differential Inverse Demand Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 786-795.
    • Handle: RePEc:oup:ajagec:v:87:y:2005:i:3:p:786-795
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2005.00762.x
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    Cited by:

    1. Sooriyakumar Krishnapillai, 2012. "Impact of NAFTA on the Preference for Meat Consumption in USA: An Inverse Demand System Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 2(1), pages 79-84.
    2. Roheim, Cathy A. & Zhang, Dengjun, 2018. "Sustainability certification and product substitutability: Evidence from the seafood market," Food Policy, Elsevier, vol. 79(C), pages 92-100.
    3. Chen, Wei & Kauffman, Dan & Taylor, Daniel B. & Peterson, Everett B., 2008. "Managing Flounder Openings for Maximum Revenue," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6193, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Lee, Young-Jae & Kennedy, P. Lynn, 2013. "Quantity And Exchange Rate Effects On U.S. Trout Prices," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142133, Southern Agricultural Economics Association.
    5. Lee, Young-Jae & Kennedy, P. Lynn, 2008. "An Examination of Inverse Demand Models: An Application to the U.S. Crawfish Industry," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 37(2), pages 1-14.
    6. Suh, Dong Hee & Guan, Zhengfei & Khachatryan, Hayk, 2017. "The impact of Mexican competition on the U.S. strawberry industry," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(4), April.

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