Import demand functions for wheat were estimated for seven South American
countries in a set of SUR equations. United States shares were estimated by
another set. Kravis-Heston-Summers RGDP series adjusted for purchasing power
parities were used as income proxies, and border pr1ce deflators were designed
to reflect changes in consumer prices and exchange rates. Countries were found
to respond to border price, income, and exchange rate changes. Price and income
coefficients were tested for equality across countr1es, failure of the test
suggested that regional aggregation may be improper. Since exchange rates were
highly elastic, recommendations were made to reactivate local currency sales and
to increase exports under barter.
