Logo Doctoral Certificate Program in Agricultural Economics Deutsch
Course of Study

Consumer Behavior and Demand Analysis: Theory and Applications


Prof. Xiaohua YU Ph.D., University of Goettingen
Email: xyu@gwdg.de; Tel: 0551-3919574

Course Description

This course is designed for graduate-level students at the University of Goettingen and the Doctoral Certificate Program in Agricultural Economics, and helps understand the fundamental economic theory of consumer behaviors and practice demand analysis. This course includes two parts:  Part I introduces the basic theory and Part II applies the theory to demand analysis using data from developing countries.

After a brief review of the basic theory, this course will focus on

The detailed course may be adjusted by the demand of the students.

Course Outline

  1. Introduction
  2. Review of the Demand Theory
    1. Utility and Demand
    2. Cost minimization
    3. Properties of Demands
    4. Consumer surplus
  3. The Theory at Work
    1. Stone’s analysis
    2. Rotterdam Demand Model
    3. Linear Expenditure System (LES)
    4. Almost Ideal Demand System (AIDS)
    5. Quadratic Almost Ideal Demand System (QUAIDS)
  4. Separability and Two-stage Budgeting
    1. Weak Separability
    2. Implicit Separability
    3. Strong Separability
    4. Indirect Separability
  5. Aggregation
    1. Homotheticity and quasi-homotheticity
    2. Linear and non-linear-aggregation
  6. Demand for Food Quality and Nutrition
    1. Quality Demand
    2. Quality and Quantity
    3. Nutrient Elasticities in a Complete Food Demand System
    4. Modeling Physical Quantities of Food and Nutrients
  7. Econometric Techniques
    1. Model Habit Persistence
    2. Zero Observations in Demand Analysis
    3. Demographic Variables and Engel’s Method
  8. Lab session: Introduction to Stata

Teaching Method: Lectures + Lab Sessions

Credits: 3

Readings and References