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Abstract

We estimate an LA/AIDS model of demand for imported dairy products for Cote d'Ivoire. We employ a unique set of Ivorian customs data, spanning seven dairy products observed monthly from January 1996 to December 2005. Demand for milk powder is found to be inelastic, as substitutes for milk powder in the domestic processing industry are scarce. Demand for fluid milk, yogurt, and cream are found to be elastic, as these domestic products produced from imported powder may substitute for the imports. With the exception of condensed milk, dairy products are found to be necessities.

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