A Dynamic Application of the AIDS Model to Import Demand for Tropical Fresh Fruits in the USA

We estimate a dynamic version of an almost ideal demand system (AIDS) model for U.S.A. imports of fresh tropical fruits: bananas, pineapples, avocadoes, papayas, mangoes/guavas, grapes and other fresh fruit imports. An error correction model specification is justified after unit root and cointegration test results confirm nonstationarity and cointegration of the data. Estimated income elasticities show that fresh grapes and other fresh fruit imports appear to be considered luxury commodities. All own-price elasticities were negative and significant. While imported bananas, pineapples, U.S.A. grapes and other fresh fruit were quite inelastic, demand for papayas and mangoes/guavas were elastic. Fresh fruits that are shown to be complementary to imported fruits include bananas, imported grapes, U.S.A. grapes and avocados, and imported avocados/other fresh fruits. Key

Issue Date:
Jun 29 2012
Publication Type:
Conference Paper/ Presentation
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 Record created 2017-04-01, last modified 2018-01-22

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