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...

Separate demand equations for national brand and private label frozen concentrated orange juice were estimated using a switching regression model. The results indicate that the demand for national brand frozen concentrated orange juice is more price responsive than the demand for private label...

The main objective of this paper is to test the hypothesis that consumer preferences for beef in the United States have been affected by structural change, which reduces to testing for parameter stability in estimated demand equations. To this end, alternative specifications of the demand...