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Abstract
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.
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