Dynamic Adjustment In Demand Equations
AbstractThe focus of this paper is the dynamic adjustment of demand. It is shown that a dynamic specification of the demand equation provides information on: (i) the level of response to a price or expenditure change taking place instantaneously, (ii) how much the adjustment has taken place after any number of periods, and (iii) how long it takes for the price change to be fully reflected in the demand. The importance of the dynamic adjustment is shown for the import demand for fresh and frozen salmon in the European Union. The results indicate that, for these product forms, only about 10% of the adjustment from a price or expenditure change takes place instantaneously, that over 60% of the adjustment has taken place after three months, but that it takes almost a year before the change is fully reflected in the demand.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Marine Resources Foundation in its journal Marine Resource Economics.
Volume (Year): 12 (1997)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://www.uri.edu/cels/enre/mre/mre.htm
Demand and Price Analysis; Resource /Energy Economics and Policy;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bjorndal, Trond & Salvanes, Kjell G & Gordon, Daniel V, 1994. "Elasticity Estimates of Farmed Salmon Demand in Spain and Italy," Empirical Economics, Springer, vol. 19(3), pages 419-28.
- Herrmann, Mark & Mittelhammer, Ronald C. & Lin, Biing-Hwan, 1992. "Applying Almon-Type Polynomials in Modelling Seasonality of the Japanese Demand for Salmon," Marine Resource Economics, Marine Resources Foundation, vol. 7(1).
- Pollak, Robert A, 1970. "Habit Formation and Dynamic Demand Functions," Journal of Political Economy, University of Chicago Press, vol. 78(4), pages 745-63, Part I Ju.
- Anderson, Gordon & Blundell, Richard, 1983. "Testing Restrictions in a Flexible Dynamic Demand System: An Application to Consumers' Expenditure in Canada," Review of Economic Studies, Wiley Blackwell, vol. 50(3), pages 397-410, July.
- Phillips, P.C.B., 1986.
"Understanding spurious regressions in econometrics,"
Journal of Econometrics,
Elsevier, vol. 33(3), pages 311-340, December.
- Peter C.B. Phillips, 1985. "Understanding Spurious Regressions in Econometrics," Cowles Foundation Discussion Papers 757, Cowles Foundation for Research in Economics, Yale University.
- Gu, Guang & Anderson, James L., 1995. "Deseasonalized Sate-Space Time Series Forecasting with Application to the US Salmon Market," Marine Resource Economics, Marine Resources Foundation, vol. 10(2).
- Pindyck, Robert S & Rotemberg, Julio J, 1983. "Dynamic Factor Demands and the Effects of Energy Price Shocks," American Economic Review, American Economic Association, vol. 73(5), pages 1066-79, December.
- Davidson, James E H, et al, 1978. "Econometric Modelling of the Aggregate Time-Series Relationship between Consumers' Expenditure and Income in the United Kingdom," Economic Journal, Royal Economic Society, vol. 88(352), pages 661-92, December.
- Goldstein, Morris & Khan, Mohsin S., 1985. "Income and price effects in foreign trade," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 2, chapter 20, pages 1041-1105 Elsevier.
- Frank Asche & Kjell G. Salvanes, 1996. "Dynamic Factor Demand Systems and the Adjustment Speed towards Equilibrium," Canadian Journal of Economics, Canadian Economics Association, vol. 29(s1), pages 576-81, April.
- Bird, Peter J.W.N., 1986. "Econometric Estimation of World Salmon Demand," Marine Resource Economics, Marine Resources Foundation, vol. 3(2).
- Anderson, James L., 1992. "Salmon Market Dynamics," Marine Resource Economics, Marine Resources Foundation, vol. 7(1).
- Frank Asche, 2001.
"Testing the effect of an anti-dumping duty: The US salmon market,"
Springer, vol. 26(2), pages 343-355.
- Asche, Frank, 1999. "Testing The Effect Of An Anti-Dumping Duty: The Us Salmon Market," 1999 Annual meeting, August 8-11, Nashville, TN 21714, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Asche, F., 1998. "Testing the Effect of an Anti-Dumping Duty: the US Salmon Market," Papers 26/98, Norwegian School of Economics and Business Administration-.
- Muhammad, Andrew & Jones, Keithly G., 2011. "Source-Based Preferences and U.S. Salmon Imports," Marine Resource Economics, Marine Resources Foundation, vol. 26(3).
- Sene, Seydina Ousmane, 2012. "Estimating the demand for gasoline in developing countries: Senegal," Energy Economics, Elsevier, vol. 34(1), pages 189-194.
- Jaffry, Shabbar & Brown, James, 2008. "A Demand Analysis of the UK Canned Tuna Market," Marine Resource Economics, Marine Resources Foundation, vol. 23(2).
- Akinboade, Oludele A. & Ziramba, Emmanuel & Kumo, Wolassa L., 2008. "The demand for gasoline in South Africa: An empirical analysis using co-integration techniques," Energy Economics, Elsevier, vol. 30(6), pages 3222-3229, November.
- Kinnucan, Henry W. & Myrland, Oystein, 2002. "Optimal Seasonal Allocation Of Generic Advertising Expenditures With Product Substitution: Salmon In France," Marine Resource Economics, Marine Resources Foundation, vol. 17(2).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.