Limited data means that prior structure is needed when working with large demand systems. The cost function is a convenient vehicle for generating demand systems incorporating such structure. While the cost function directly yields Hicksian demand functions they will not usually have an explicit...

Although water markets have been in operation for nearly 30years, previous empirical studies have ignored farmer’s land use response to water trading in the Murray-Darling Basin (MDB), Australia. A Nerlovian partial adjustment model of rice and cotton acreage response in the MDB were specified...