The uniform substitute hypothesis is used to develop a conditional demand system for juice products. The hypothesis offers a means to improve upon the precision of the parameter estimates and save degrees of freedom, when closely related competing goods are included in a demand system. Uniform substitute restrictions are tested for alternative juke groupings using the likelihood ratio test. The results indicate that juices in a group must be quite similar to accept the restrictions.
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Mark G. Brown (1993) studied this question.
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