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Analysis of the demand for imported meat in Switzerland using a dynamic specification: Implications for the European Union

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  • Shiferaw T. Feleke

    (Department of Animal Sciences, University of Florida, Gainesville 32611)

  • Richard L. Kilmer

    (Food and Resource Economics Department, University of Florida, Gainesville, Fl 32611)

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    Abstract

    The study identifies the long-run equilibrium (steady-state) relationship of the demand for imported meat in Switzerland and the speed of adjustment of the short-run demand using the Error Correction Linear Approximate Almost Ideal Demand System (EC-LA|AIDS). Results indicate that imports of meat into Switzerland have a long-run equilibrium relationship with price and real expenditure. The study also finds that the demand for pork is price elastic, while the demand for beef, chicken, and mutton is price inelastic. Results will have important implications for the EU meat industry to adjust its export supply in response to changes in prices resulting from the bilateral trade agreements in which Switzerland is expected to reduce or abolish nontariff barriers, further open its market, and reduce or abolish all duties and export subsidies. [EconLit citations: Q110, Q130, Q170 © 2007 Wiley Periodicals, Inc. Agribusiness 23: 497-510, 2007.

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    File URL: http://hdl.handle.net/10.1002/agr.20138
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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

    Volume (Year): 23 (2007)
    Issue (Month): 4 ()
    Pages: 497-510

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    Handle: RePEc:wly:agribz:v:23:y:2007:i:4:p:497-510

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    Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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    1. Frank Asche & Kjell G. Salvanes, 1996. "Dynamic Factor Demand Systems and the Adjustment Speed towards Equilibrium," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 29(s1), pages 576-81, April.
    2. Engle, Robert F & Granger, Clive W J, 1987. "Co-integration and Error Correction: Representation, Estimation, and Testing," Econometrica, Econometric Society, Econometric Society, vol. 55(2), pages 251-76, March.
    3. Peter C.B. Phillips, 1985. "Time Series Regression with a Unit Root," Cowles Foundation Discussion Papers, Cowles Foundation for Research in Economics, Yale University 740R, Cowles Foundation for Research in Economics, Yale University, revised Feb 1986.
    4. 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, Wiley Blackwell, vol. 50(3), pages 397-410, July.
    5. Giannis Karagiannis & Kostas Velentzas, 1997. "Explaining Food Consumption Patterns In Greece," Journal of Agricultural Economics, Wiley Blackwell, Wiley Blackwell, vol. 48(1-3), pages 83-92.
    6. Moschini, GianCarlo, 1995. "Units of Measurement and the 'Stone Index' In Demand System Estimation," Staff General Research Papers, Iowa State University, Department of Economics 5058, Iowa State University, Department of Economics.
    7. 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.
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