The Almost Ideal Demand System Approximation and Separability

The paper focuses on separability in the almost ideal demand system (AIDS) in time series analysis. The AIDS approximation based on Stone's price index is specified in terms of the Rotterdam model and block additivity is imposed for illustrative purposes. A generalization to other types of separability is then considered. The model can be viewed as an extension to Theil et al.'s Working-PI time series model. In both the Theil et al. model and the AIDS model examined here, the marginal propensity to spend on a good is allowed to depend on the good's budget share. In the model in this paper, the Slutsky coefficients are further allowed to depend on the budget shares. The model provides a consistent way to analyze subgroup demand relationships.almost ideal demand system, separability, Rotterdam model, Demand and Price Analysis,

Asymmetric demand responses: a demand system approach

Asymmetry is introduced into the Rotterdam model by allowing the income response to depend on whether real income increases or decreases. Price responses, in turn, are asymmetric through the general and specific substitution terms. Analysis of data on food and three other broadly defined goods suggests presence of asymmetry.asymmetric demand response, Rotterdam model, Demand and Price Analysis,

A DYNAMIC DIFFERENTIAL DEMAND SYSTEM: AN APPLICATION OF TRANSLATION

The differential demand system or Rotterdam model is extended to include lagged consumption through translation parameters, allowing habit and inventory effects. Applications of the model to annual U.S. expenditure and weekly juice sales data illustrate the importance of the time interval of an observation on the relative strengths of the habit inventory.Demand and Price Analysis,

A study of the impact of grapefruit-drug interaction on the demand for grapefruit juice

grapefruit juice, drug interaction, demand, Agribusiness, Demand and Price Analysis,

RESTRICTIONS ON THE EFFECTS OF PREFERENCE VARIABLES IN THE ROTTERDAM MODEL

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 illustrates the methodology. This variable was modeled through its impact on marginal utilities via "adjusted" prices, following theoretical work by Basmann and Barten, among others. Results show that the female labor participation has negatively impacted the demands for citrus, while positively impacting the demands for other fresh fruit.demand, demographic, fresh fruit, Rotterdam model, Demand and Price Analysis,

Impacts of Flu/Cold Incidences and Retail Orange Juice Promotion on Orange Juice Demand

In this study, we examine the impacts of retail promotions and flu/cold incidences on the demand for orange juice using weekly Nielsen grocery orange juice sales statistics and the flu/cold incidences reported by Surveillance Data Inc. The cross-section time-series pooling technique proposed by Parks was used to estimate the demand parameters. Results show that flu/cold incidences increased the effectiveness of retail promotions on the demand for orange juice.retail promotion, flu, cold, orange juice, demand, Marketing,