THE INVERSE LEWBEL DEMAND SYSTEM

A new model of consumer preferences is introduced. It is appropriate for modeling perishable commodities which are produced with a lag, where it is reasonable to assume the market-level quantities are fixed by previously made production decisions. The inverse Lewbel system, as it is called, is a flexible nonlinear system of share equations, which nests two other inverse demand systems, the direct translog and the inverse AIDS. Thus, the inverse Lewbel may be employed to test whether these more restrictive preference structures are appropriate. In an application to quarterly U.S. meat consumption, the more restrictive structures are rejected.


Issue Date:
1994-07
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/31227
Published in:
Journal of Agricultural and Resource Economics, Volume 19, Number 1
Page range:
173-182
Total Pages:
10




 Record created 2017-04-01, last modified 2017-08-24

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