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Demand Systems for Competing Commodities: An Application of the Uniform Substitute Hypothesis

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  • Mark G. Brown

Abstract

The uniform substitute hypothesis is used to develop a conditional demand system for juice products. The hypothesis offers a means to improve upon the precision of the parameter estimates and save degrees of freedom, when closely related competing goods are included in a demand system. Uniform substitute restrictions are tested for alternative juke groupings using the likelihood ratio test. The results indicate that juices in a group must be quite similar to accept the restrictions.

Suggested Citation

  • Mark G. Brown, 1993. "Demand Systems for Competing Commodities: An Application of the Uniform Substitute Hypothesis," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 15(3), pages 577-589.
    • Handle: RePEc:oup:revage:v:15:y:1993:i:3:p:577-589.
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    File URL: http://hdl.handle.net/10.2307/1349490
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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.
    2. Brown, Mark G., 2008. "Impact of Income on Price and Income Responses in the Differential Demand System," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(2), pages 1-16, August.
    3. Knight, Erika P. & House, Lisa & Lee, Jonq-Ying & Spreen, Thomas H., 2008. "Are Fruit Juice Categories Separable?," 110th Seminar, February 18-22, 2008, Innsbruck-Igls, Austria 49878, European Association of Agricultural Economists.
    4. Brown, Mark G., 2006. "Impact of Income on Price and Income Responses in the Differential Demand System," Research papers 36836, Florida Department of Citrus.
    5. Styles, Erika Knight & Lee, Jonq-Ying & House, Lisa, 2010. "Are Beverage Categories Separable?," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61864, Agricultural and Applied Economics Association.
    6. Brown, Mark G. & Lee, Jonq-Ying, 2000. "A Uniform Substitute Demand Model With Varying Coefficients," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(1), pages 1-10, April.

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