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Relationship between the Unemployment Rate and the Demand for Orange Juice

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  • Brown, Mark G.
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    Abstract

    This study examined the relationship between the unemployment rate and the demand for OJ. Based on the demand estimates obtained, the hypothesis that unemployment is having a significant negative impact on OJ demand cannot be refuted. Over the sample period, the unemployment rate increased by about 4.5 points, resulting in a 7.7% to 12.6% decline in OJ demand, based on the alternative model estimates. The unemployment rate, however, has trended upward in recent years, raising the possible that it may be reflecting to some extent the impact of other trend related factors such as preferences for reduced calories.

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    File URL: http://purl.umn.edu/104353
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    Bibliographic Info

    Paper provided by Florida Department of Citrus in its series Research Papers 2010 with number 104353.

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    Date of creation: 31 Aug 2010
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    Handle: RePEc:ags:fdcr10:104353

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    Web page: http://www.floridajuice.com/industry_market.php

    Related research

    Keywords: unemployment rate; demand; orange juice; Agribusiness;

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    1. Brown, Mark G., 2008. "Impact of Income on Price and Income Responses in the Differential Demand System," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(02), August.
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