The issue of identification of the parameter α0 in the price index of the Almost Ideal Demand System (AIDS) is examined. In nearly all empirical studies, the model’s likelihood function has been extremely flat in α0, and this parameter has not been able to be estimated. Assumed values are...

In this study, the impacts of Florida Department of Citrus (FDOC) orange juice (OJ) advertising on U.S., OJ demand and the price received by Florida growers are examined.

The system-wide approach is used to develop an import allocation model based on blockwise dependence. The import demand system is parameterized using the absolute version of the Rotterdam model. Two empirical examples are given to illustrate the approach.

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...

This study uses the household production theory to study the demand for nutrients, i.e., households purchase a combination of food items from the market and produce the needed nutrients from these food items. By following the traditional household production approach, shadow prices for nutrients...