Econometrica: Jul 1967, Volume 35, Issue 3
Utility Maximization and the Demand for New Zealand Meats
Robin H. CourtThe pure theory of consumer demand is a thoroughly developed topic, more so than is its use in providing extra information to improve estimates of demand parameters. In this paper some aspects of the Slutsky-Hicks-Allen theory of demand are used in conjunction with multivariate statistical analysis to provide estimates of elasticities of domestic demand for several New Zealand meats. These estimates are more efficient, in a statistical sense, and considerably superior for prediction purposes than are corresponding results obtained by more standard methods. In addition, the utility maximizationtheory is tested to see if it is an hypothesis capable of explaining observed demand for the meats considered.
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