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The benefit function approach to modeling price-dependent demand systems: An application of duality theory
McLaren,Keith R.1; Wong,K. K.Gary2
2019-06-19
Source PublicationAmerican Journal of Agricultural Economics
ABS Journal Level3
ISSN14678276 00029092
Volume91Issue:4Pages:1110-1123
Abstract

In this article, we advocate more extensive use of the benefit function in specifying price-dependent or inverse demand models. We demonstrate how duality theory may be used to establish the interrelationships between the Marshallian (or Hicksian) inverse demands and Luenberger's adjusted price functions, allowing estimable inverse demands to be derived directly from a benefit function. We estimate two systems of inverse demands for Japanese quarterly fish consumption. Results indicate that the procedures and methods employed here appear promising, and may prove beneficial for quantity and welfare analysis when modeling systems of inverse demand functions. © 2009 Agricultural and Applied Economics Association.

KeywordBenefit Functions Duality Theory Inverse Demands Numerical Inversion Estimation Method
DOI10.1111/j.1467-8276.2009.01318.x
URLView the original
Indexed BySSCI
Language英語English
WOS Research AreaAgriculture ; Business & Economics
WOS SubjectAgricultural Economics & Policy ; Economics
WOS IDWOS:000269490000018
Scopus ID2-s2.0-70149088388
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Citation statistics
Document TypeJournal article
CollectionDEPARTMENT OF ECONOMICS
Affiliation1.Department of econometricsDepartment of Econometrics and Business StatisticsMonash University,Australia
2.Department of EconomicsThe University of Macau,Macao
Recommended Citation
GB/T 7714
McLaren,Keith R.,Wong,K. K.Gary. The benefit function approach to modeling price-dependent demand systems: An application of duality theory[J]. American Journal of Agricultural Economics, 2019, 91(4), 1110-1123.
APA McLaren,Keith R.., & Wong,K. K.Gary (2019). The benefit function approach to modeling price-dependent demand systems: An application of duality theory. American Journal of Agricultural Economics, 91(4), 1110-1123.
MLA McLaren,Keith R.,et al."The benefit function approach to modeling price-dependent demand systems: An application of duality theory".American Journal of Agricultural Economics 91.4(2019):1110-1123.
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