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A general differential demand model for mixed quantity- and price-dependent equations AgEcon
Brown, Mark G.; Lee, Jonq-Ying; Gao, Xiaoming.
A mixed demand system is developed using the fundamental matrix equation of demand theory. The model parameterization combines the parameterizations of the quantity- and price- dependent Rotterdam models. The relationship between the mixed-demand-model parameters and the underlying direct and indirect utility functions allows analysis of various separability assumptions.
Tipo: Report Palavras-chave: Mixed demand; Rotterdam model; Fundamental matrix; Demand and Price Analysis.
Ano: 1993 URL: http://purl.umn.edu/52735
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A UNIFORM SUBSTITUTE DEMAND MODEL WITH VARYING COEFFICIENTS AgEcon
Brown, Mark G.; Lee, Jonq-Ying.
This study extends Barten's synthetic demand modeling approach to increase the flexibility of the uniform substitute specification of the Rotterdam demand system. Marginal propensities to consume (MPC) vary with budget shares and Slutsky coefficients are defined in terms of varying MPCs. An application of the model to orange-juice products shows that the pattern of income and price elasticities over time is much different than when MPCs are restricted to be constant.
Tipo: Journal Article Palavras-chave: Demand; Varying coefficient; Rotterdam model; Orange juice; Demand and Price Analysis.
Ano: 2000 URL: http://purl.umn.edu/15403
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Allowing for Group Effects When Estimating Import Demand for Source and Product Differentiated Goods AgEcon
Muhammad, Andrew.
In this study an import demand model (differential production model) is presented that is used in estimating the demand for source and product differentiated goods simultaneously. Unlike the traditional import demand models, this model can account for changes in relative group expenditures. Expenditure estimates differed when comparing the differential production model and Rotterdam model results. Results showed that if group revenue shares are relatively fixed, then the bias in expenditure estimates due to omitting group effects will be small when using traditional demand models such as the AIDS or Rotterdam models. As relative group shares significantly change and diverge the bias increases, particularly for imports representing a larger share of group...
Tipo: Conference Paper or Presentation Palavras-chave: Import demand; AIDS model; Rotterdam model; Product differentiation; Source differentiation; Demand and Price Analysis; International Relations/Trade; F17; Q17; Q11..
Ano: 2008 URL: http://purl.umn.edu/6364
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Alternative specifications of advertising in the Rotterdam model AgEcon
Brown, Mark G.; Lee, Jonq-Ying.
This paper examines several approaches to introduce advertising in systems of demand equations. Advertising is included in the Rotterdam model using an unrestricted specification and three restricted specifications - advertising affects demand alternatively through (1) marginal utilities as in studies by Duffy (1987, 1989, 1990) and Selvanathan (1989), (2) scaling parameters which can be viewed as indicators of product quality, and (3) translation parameters which can be viewed as indicators of basic needs. A test to choose among the alternative specifications is provided and the methodology is applied to data on demand for fruit juice products.
Tipo: Report Palavras-chave: Advertising; Rotterdam model; Scaling; Translation; Demand and Price Analysis.
Ano: 1991 URL: http://purl.umn.edu/52717
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AN ANALYSIS AS TO THE CAUSAL RELATIONSHIP BETWEEN BIOETHANOL EXPANSION AND AGRICULTURAL CROP ACREAGE ALLOCATION IN THE UNITED STATES AgEcon
Lee, Young-Jae; Kennedy, P. Lynn.
This study analyzes the historical price response of individual crop acreage in order to determine the impacts of an expansionist policy in bioethanol production on the U.S. agricultural industry. In doing this, this study provides an economic foundation by using a traditional Rotterdam model to simulate a cropland demand system. Within the developed framework, this study estimates own and cross acreage elasticities and scale elasticities to show the impacts of acreage values on crop production and the relationship between total cropland and individual crop acreage. This study found that rice farming is most inelastic to own acreage value. Soybeans, hay, and wheat are shown to be good substitute crops for corn. Corn, soybeans, hay, wheat, cotton, barley,...
Tipo: Conference Paper or Presentation Palavras-chave: Bioethanol; Acreage value; Rotterdam model; Own acreage elasticity; Cross acreage elasticity; Scale elasticity; Crop Production/Industries; Resource /Energy Economics and Policy.
Ano: 2008 URL: http://purl.umn.edu/6343
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AN ASSESSMENT OF DYNAMIC BEHAVIOR IN THE U.S. CATFISH MARKET: AN APPLICATION OF THE GENERALIZED DYNAMIC ROTTERDAM MODEL AgEcon
Muhammad, Andrew; Jones, Keithly G..
Dynamic demand systems have been employed in a number of studies to account for habit formation and inventory adjustments in demand. Few studies have attempted to provide a theoretical foundation for the dynamic demand structures employed. Recently, Bushehri (2003) showed how a generalized dynamic Rotterdam model could be derived from the neoclassical intertemporal utility maximization problem; however, no empirical application is provided in his study. This paper provides an empirical application of the generalized dynamic Rotterdam model to the demand for processed catfish products in the U.S. The two-period dynamic Rotterdam model explained a significant amount of the variation in U.S. catfish demand and was preferred to the one-period and static...
Tipo: Conference Paper or Presentation Palavras-chave: Dynamic; Rotterdam model; Catfish; Demand; Partial adjustment; Demand and Price Analysis; Research Methods/ Statistical Methods; Q11; Q13.
Ano: 2008 URL: http://purl.umn.edu/45912
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An Assessment of Dynamic Behavior in the U.S. Catfish Market: An Application of the Generalized Dynamic Rotterdam Model AgEcon
Muhammad, Andrew; Jones, Keithly G..
The generalized dynamic Rotterdam model was used in estimating U.S. demand for disaggregated catfish. The overall goal was to examine habit persistence in consumption and to determine the adjustment process in demand. Results indicated that it took up to 1 month for catfish-product demand to fully adjust to changes in expenditures and prices. Additionally, habit persistence played a role in demand where present consumption of a given product was positively affected by past consumption of that product. Consequently, U.S. catfish demand was significantly more elastic in the long-run.
Tipo: Journal Article Palavras-chave: Catfish; Demand; Dynamics; Partial adjustment; Rotterdam model; Agribusiness; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Institutional and Behavioral Economics; C51; Q11; Q13; Q17.
Ano: 2009 URL: http://purl.umn.edu/56660
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AN ECONOMETRIC ANALYSIS OF DEMAND FOR MEAT AND FISH PRODUCTS IN KOREA AgEcon
Jung, Jione; Koo, Won W..
This study analyzes the structure of Korean meat and fish product demand. The Linear Approximate Almost Ideal Demand System (LA/AIDS) is used to estimate Korean meat and fish demand. Since the expenditure term is endogenous, the three-stage least squares (3SLS) estimator is used to estimate the demand system. Empirical results indicate that beef imports would increase with increases in per capita income. If imported beef becomes less expensive as a result of the trade liberalization policy adopted by the Korean government, Hanwoo beef would not be competitive and could lose its market share. Pork and chicken would be able to maintain market shares, but most fish products would lose market shares.
Tipo: Working or Discussion Paper Palavras-chave: Demand; Almost ideal demand system; Meat; Fish; Endogeneity; Rotterdam model; Separabiilty; Estimator; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety.
Ano: 2000 URL: http://purl.umn.edu/23122
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Asymmetric demand responses: a demand system approach AgEcon
Brown, Mark G.; Lee, Jonq-Ying.
Asymmetry is introduced into the Rotterdam model by allowing the income response to depend on whether real income increases or decreases. Price responses, in turn, are asymmetric through the general and specific substitution terms. Analysis of data on food and three other broadly defined goods suggests presence of asymmetry.
Tipo: Report Palavras-chave: Asymmetric demand response; Rotterdam model; Demand and Price Analysis.
Ano: 1991 URL: http://purl.umn.edu/52719
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Demand for orange-juice products: an application of the uniform substitute model AgEcon
Brown, Mark G.; Lee, Jonq-Ying.
The differential demand model for uniform substitutes is used to analyze demand for orange-juice products. Consumption trends are examined by allowing the marginal propensities to consume to vary with time. Results indicate ready-to-serve (frozen concentrated) orange juice has become more (less) sensitive to expenditure and prices.
Tipo: Report Palavras-chave: Orange juice; Rotterdam model; Uniform substitute; Demand and Price Analysis.
Ano: 1991 URL: http://purl.umn.edu/52718
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DO THE JAPANESE DISCRIMINATE AGAINST AUSTRALIAN BEEF IMPORTS?: EVIDENCE FROM THE DIFFERENTIAL APPROACH AgEcon
Weatherspoon, Dave D.; Seale, James L., Jr..
This paper considers an application of the differential approach to Japanese demand for beef imports from 1970 to 1993. Results of homothetic demand and negative (significant) own-price elasticities indicate that the Japanese did not discriminate against Australian beef, but the decrease in Australia's trade shares was due to changes in relative prices.
Tipo: Journal Article Palavras-chave: Japan; Beef Imports; Rotterdam model; CBS model; International Relations/Trade.
Ano: 1995 URL: http://purl.umn.edu/15265
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Do U.S. Cotton Subsidies Affect Competing Exporters? An Analysis of Import Demand in China AgEcon
Muhammad, Andrew; McPhail, Lihong Lu; Kiawu, James.
We estimate the demand for imported cotton in China and assess the competitiveness of cotton-exporting countries. Given the assertion that developing countries are negatively affected by U.S. cotton subsidies, our focus is the price competition between the United States and competing exporters (Benin, Burkina Faso, Chad, Mali, India, and Uzbekistan). We further project how U.S. programs affect China’s imports by country. Results indicate that if U.S. subsidies make other exporting countries worse off, this effect is lessened when global prices respond accordingly. If subsidies are eliminated, China’s cotton imports may not fully recover from the temporary spike in global prices.
Tipo: Article Palavras-chave: China; Cotton; Import demand; Rotterdam model; Subsidies; United States; West Africa; International Relations/Trade; F17; Q11; Q17.
Ano: 2012 URL: http://purl.umn.edu/123786
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Fragmenting markets and quality change in New Zealand foods: empirical analysis with a Rotterdam model AgEcon
Khaled, Mohammed; McWha, Vhari; Lattimore, Ralph G..
Very little is known about changes in the demand characteristics of food in New Zealand. As far as we can determine, there has never been a complete disaggregated food demand model estimated for New Zealand. The object of this paper is to update these estimates using more recent data to see whether there are grounds for believing that the structural changes that occurred primarily during the last two decades are having effects on the magnitude of food demand elasticities in New Zealand. To this end, a Rotterdam food demand system is estimated using time series data. The results indicate that over the last 20 years, household consumption has increased for fruit and vegetables, poultry, food eaten away from home, and sweet products, drinks and other foods....
Tipo: Journal Article Palavras-chave: Consumer behaviour; Food demand; Agricultural and food policy; Rotterdam model; Food quality; New Zealand; Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis.
Ano: 2004 URL: http://purl.umn.edu/97506
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Impact of Income on Price and Income Responses in the Differential Demand System AgEcon
Brown, Mark G..
An extension of the Rotterdam model is developed that makes the model’s income flexibility and marginal propensities to consume varying coefficients. Frisch’s duality relationships that the second partial derivatives of demand with respect to income and prices are independent of the order of differentiation are imposed with the marginal propensities to consume specified as functions of income and price, and the Slutsky coefficients specified as functions of income only. A uniform substitute specification is used to analyze the conditional demands for a group of beverages.
Tipo: Journal Article Palavras-chave: Demand; Rotterdam model; Varying parameters; Agribusiness; Agricultural Finance; Production Economics; C51; D12; Q11.
Ano: 2008 URL: http://purl.umn.edu/47201
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Impacts of Promotional Tactics in a Conditional Demand System for Beverages AgEcon
Brown, Mark G.; Lee, Jonq-Ying.
This study examined the impacts of four promotional tactics—features, displays, features and display together, and temporary price reductions—in context of a conditional demand system for 12 beverages. The Rotterdam model with promotion effects specified through the Tintner-Ichimura-Basmann relationship was used in the empirical study. The estimated conditional-demand equations exhibited relatively strong own- and cross-promotional effects, indicating a relatively high level of competition for market share among the beverages studied.
Tipo: Journal Article Palavras-chave: Advertising; Demand; Promotion; Rotterdam model; Agribusiness; Demand and Price Analysis.
Ano: 2007 URL: http://purl.umn.edu/62293
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Import Demand for Disaggregated Fresh Fruits in Japan AgEcon
Schmitz, Troy G.; Seale, James L., Jr..
Using annual Japanese fresh fruit import data from 1971-1997, this study analyzes the import patterns of Japan's seven most popular fresh fruits by implementing and testing a general differential demand system that nests four alternative import demand specifications. When tested against the general system using the five-good case (bananas, grapefruits, oranges, and lemons and aggregating pineapples, berries, and grapes), the analysis rejects the AIDS and NBR specifications, but does not reject Rotterdam and CBS. When estimated using the six-good case (bananas, grapefruits, oranges, lemons, pineapples, and aggregating berries and grapes), the analysis rejects all specifications except the Rotterdam model.
Tipo: Working or Discussion Paper Palavras-chave: Almost Ideal Demand System; Consumer demand; Fruit; Import demand; Japan; Rotterdam model; Demand and Price Analysis; International Relations/Trade.
Ano: 2002 URL: http://purl.umn.edu/15639
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Media Coverage of Animal Handling and Welfare: Influence on Meat Demand AgEcon
Tonsor, Glynn T.; Olynk, Nicole J.; Wolf, Christopher A..
Replaced with revised version of paper 7/21/09.
Tipo: Conference Paper or Presentation Palavras-chave: Animal welfare; Consumer demand; Meat quality; Media information; Rotterdam model; Source of information; Information indices; Agricultural and Food Policy; Demand and Price Analysis.
Ano: 2009 URL: http://purl.umn.edu/49338
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Nile perch demand in the Netherlands: are exports from Kenya, Tanzania and Uganda source-differentiated? AgEcon
Muhammad, Andrew.
This study examined Nile perch demand in the Netherlands and assessed the importance of country of origin as a determining factor. Import demand equations were estimated using the absolute price version of the Rotterdam model where Nile perch fillets were differentiated by product form (chilled and frozen) and by source country (Kenya, Tanzania and Uganda). The Armington framework (source-differentiation) is often used when estimating import demand for a similar product from different sources; however, the results of this study indicated that country of origin is not a factor in the Netherlands when importing Nile perch. Results showed that the responsiveness of importers to price changes was the same regardless to the supplying country. Likelihood ratio...
Tipo: Journal Article Palavras-chave: Nile perch; The Netherlands; Rotterdam model; Imports; Demand; Kenya; Tanzania; Uganda; Nile perch; Uganda; Tanzania; Kenya; Demand; Imports; Rotterdam model; The Netherlands; Agribusiness.
Ano: 2009 URL: http://purl.umn.edu/53340
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ON THE ESTIMATION OF ADVERTISING EFFECTS FOR BRANDED PRODUCTS: AN APPLICATION TO SPAGHETTI SAUCES AgEcon
Capps, Oral, Jr.; Seo, Seong-Cheon; Nichols, John P..
Using IRI Infoscan data pertaining to six types of spaghetti sauces and employing an extension of the demand systems framework developed by Duffy, estimates are obtained of own-price, cross-price, and total expenditure elasticities as well as own- and cross-product advertising elasticities. We augment the Duffy model through the use of a polynomial inverse lag mechanism to deal with the carryover effects of advertising. We also account for the impacts of features in newspaper fliers, in-store displays, and coupons. Advertising efforts by industry leaders in spaghetti sauce produce positive own-advertising elasticities (ranging from -.000003 to -.0094). Own-price elasticities are in the elastic range, and nearly all compensated cross-price effects are...
Tipo: Journal Article Palavras-chave: Advertising effects; Demand systems; IRI Infoscan data; Polynomial inverse lag; Rotterdam model; Marketing.
Ano: 1997 URL: http://purl.umn.edu/15054
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Restrictions on autogressive error processes in systems of demand equations AgEcon
Brown, Mark G..
Alternative theoretically based restrictions on autoregressive error processes in systems of demand equations are examined. Scaling, translation, and a utility-based approach suggested by Theil are used to generate restrictions. A study of juice demands suggests that the restrictions examined may be useful for empirical analysis.
Tipo: Report Palavras-chave: Augoregressive error processes; Rotterdam model; Juice demand; Demand and Price Analysis.
Ano: 1993 URL: http://purl.umn.edu/52736
Registros recuperados: 27
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