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Restrictions on the Effects of Preference Variables in the Rotterdam Model

Published online by Cambridge University Press:  28 April 2015

Mark G. Brown  and
Jonq-Ying Lee
Mark G. Brown
Affiliation:
Economic and Market Research Department, Florida Department of Citrus, University of Florida, Gainesville
Jonq-Ying Lee
Affiliation:
Economic and Market Research Department, Florida Department of Citrus, University of Florida, Gainesville
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Abstract

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.

Keywords

demanddemographicfresh fruitRotterdam model
Type
Original Articles
Information
Journal of Agricultural and Applied Economics , Volume 34 , Issue 1 , April 2002 , pp. 17 - 26
Copyright
Copyright © Southern Agricultural Economics Association 2002

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