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...

A single equation demand and a sourced differentiated Almost Ideal Demand System (AIDS) model are employed to investigate factors influencing the dairy import demand in China and competition among different exporters from 2002 to 2012. Results from both models are compared and own-price,...

This study examines imposing and testing restrictions on preference variables in the Rotterdam model through the impacts of these variables on marginal utilities. An empirical analysis of the impact of a female labor force participation variable in a Rotterdam demand system for fresh fruit...

This paper examines Chinese consumer preference for major animal products and assesses the potential impacts of a reduction in China's import tariff on its pork and poultry demand and net import. Our analysis suggests that China's demand for animal products will continue to grow as income...

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...

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...

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...

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 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...