COMPLETE FLEXIBILITY SYSTEMS AND THE STATIONARITY OF U.S. MEAT DEMANDS

A Rotterdam demand model is used to detect evidence of structural change in beef, pork, and chicken demands. The demand model is partially inverted prior to estimation to account for meat supply fixity. Estimation uses a likelihood maximization routine applied to 1950 through 1985 annual data. The results suggest severe disruption in the meat markets in the 1970s. A comparison of the 1980s and the 1960s elasticity structures reveals that income and cross-price elasticities are nearly the same but direct price elasticities are lower and are trending toward even more inelasticity. Implications for pricing and risk management are discussed.


Issue Date:
1987-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/32223
Published in:
Western Journal of Agricultural Economics, Volume 12, Number 2
Page range:
152-163
Total Pages:
12




 Record created 2017-04-01, last modified 2017-08-24

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