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This study assumes that consumer expenditures occur in a stepwise fashion in which income is fist allocated to budget categories and then to optimum quantities within each category. With this assumption, a model was developed to estimate the price and icome elasticities of demand of all items in one budget category—like food—and the cross‐price elasticities of these items with all others. The approach permits one to specify the changes in expenditure levels on budget categories from cross‐section information and the flexibility of money. The model was empirically applied to Argentine consumption data.

ITTLE is known about how technology is generated in agriculture and how technological improvements affect different sectors of society both within and outside of agriculture. This becomes apparent after one reads two excellent survey papers by Nadiri [ 15 ] and Kennedy and Thirlwall [13] on technological change. Ir appears that relatively little theoretical and empirical work has been done on the welfare or income distributional effects of technological change. This is unfortunate, for a considerable amount of research funds are spent each year by both private and public institutions to develop new technologies for agriculture.The purpose of this paper is to discuss the welfare implications of different types of technological advances in agriculture. The welfare gains and losses are "technologically speci¡ Also, the distribution of welfare gains from technological change depends critically on the industrial structure of the farm ¡ and the input suppliers to these ¡ at University of Iowa Libraries/Serials Acquisitions on June 23, 2015 http://ajae.oxfordjournals.org/ Downloaded from 4 This body of literature has recently been surveyed by

The welfare consequences of price instability critically depend on the type of market intermediary. Both a producer marketing board and a pure middleman will stabilize consumer prices; but the latter, unlike the producer marketing board, will find it advantageous to “manufacture” price instability for producers.