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Preference Variable Impacts in Direct and Inverse Differential Demand Systems

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  • Mark G. Brown
  • Jonq-Ying Lee

Abstract

Preference variables are included in the inverse Rotterdam model based on the Tintner-Ichimura-Basmann relationship linking preference effects on quantities demanded to price effects and preference effects on marginal utilities. Restrictions are placed on the effects of the preference variables on the marginal utilities, resulting in reductions in the parameter space for the preference variables in both direct and inverse demand systems. The model is used to analyze impacts of product quality on fresh citrus demand. Copyright 2010, Oxford University Press.

Suggested Citation

  • Mark G. Brown & Jonq-Ying Lee, 2010. "Preference Variable Impacts in Direct and Inverse Differential Demand Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(3), pages 889-898.
  • Handle: RePEc:oup:ajagec:v:92:y:2010:i:3:p:889-898
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    File URL: http://hdl.handle.net/10.1093/ajae/aap036
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    Cited by:

    1. Widenhorn, Andreas & Salhofer, Klaus, 2014. "Using a Generalized Differenced Demand Model to Estimate Price and Expenditure Elasticities for Milk and Meat in Austria," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 63(02), pages 1-16, June.
    2. Widenhorn, Andreas & Salhofer, Klaus, 2014. "Using a Generalized Differenced Demand Model to Estimate Price and Expenditure Elasticities for Milk and Meat in Austria," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 63(2).
    3. Brown, Mark G. & Lee, Jonq-Ying, 2011. "Some Further Discussion on the Price Index for The Almost Ideal Demand System: A Chain Price Index Approach," Research papers 121588, Florida Department of Citrus.
    4. Brown, Mark G. & Lee, Jonq-Ying, 2012. "The AIDS: A chain price index approach," Economics Letters, Elsevier, vol. 117(2), pages 477-479.

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