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 adopted the scaling approach to examine the impacts of inventories on tuna auction prices in Japan using the Rotterdam inverse demand system. The inclusion of two inventory variables in the model only increases the number of parameters by two. Results indicate that frozen tunas are...

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...