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...

A demand system model differentiating goods by origin is developed to examine impacts of duty drawback on U.S. orange juice exports and prices. An empirical analysis suggests that on average duty drawback has increased annual orange juice exports by about 16.5 million SSE gallons or 11% of...

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...

A differential demand system for quasi separability is developed, following the approach used by Theil et al. in developing the Working-PI time series model. The Slutsky coefficients vary with commodity budget shares and intergroup substitution depends on group compensated price effects.