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Impact of NAFTA on the Preference for Meat Consumption in USA: An Inverse Demand System Approach

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  • Sooriyakumar Krishnapillai

    (Department of Agricultural Economics and Rural sociology, Auburn University, U.S.A.)

Abstract

This study examines the impacts of NAFTA on meat demand and develops an inverse demand system model for meat to analyze price and scale flexibility. The inverse demand system model for meat products suggests that, After NAFTA, there is a decline in average on the preference for beef consumption. The availability of low quality beef and the concern over infectious disease through the imported beef might be the reasons for this decline on the preference for beef consumption. Results show that all meats are substitutes to each other and proportionate increase in all meats reduce the price for meats.

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Bibliographic Info

Article provided by Econjournals in its journal International Journal of Economics and Financial Issues.

Volume (Year): 2 (2012)
Issue (Month): 1 ()
Pages: 79-84

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Handle: RePEc:eco:journ1:2012-01-9

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Related research

Keywords: Inverse demand system model; NAFTA; Price and Scale Flexibility;

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References

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  1. Kesavan, T & Buhr, Brian, 1995. "Price Determination and Dynamic Adjustments: An Inverse Demand System Approach to Meat Products in the United States," Empirical Economics, Springer, Springer, vol. 20(4), pages 681-98.
  2. K. K. Gary Wong & Keith R. McLaren, 2005. "Specification and Estimation of Regular Inverse Demand Systems: A Distance Function Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 87(4), pages 823-834.
  3. Barten, A. P. & Bettendorf, L. J., 1989. "Price formation of fish : An application of an inverse demand system," European Economic Review, Elsevier, Elsevier, vol. 33(8), pages 1509-1525, October.
  4. Moschini, GianCarlo & Vissa, A., 1992. "Linear Inverse Demand System, A," Staff General Research Papers, Iowa State University, Department of Economics 11250, Iowa State University, Department of Economics.
  5. Moschini, GianCarlo & Vissa, Anuradha, 1992. "A Linear Inverse Demand System," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, Western Agricultural Economics Association, vol. 17(02), December.
  6. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, American Economic Association, vol. 70(3), pages 312-26, June.
  7. Toshinobu Matsuda, 2005. "Forms of Scale Curves and Differential Inverse Demand Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 87(3), pages 786-795.
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