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Analysis of Fruit Consumption in the U.S. with a Quadratic AIDS Model

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  • Mekonnen, Dawit Kelemework
  • Huang, Chung L.
  • Fonsah, Esendugue Greg

Abstract

The Quadratic AIDS model was estimated to analyze the U.S. fruit consumption using annual per capita consumption data and prices for a demand system consisting of fresh fruit, fruit juice and other processed fruit. All Marshallian own price elasticities are found to be negative and the demand system is dominated by complementarity relationships. Both own and cross price Marshallian elasticities are less than one. Fruit juices are found to be expenditure elastic conditional on the total expenditure on fruits while fresh fruits and other processed fruits are found to be expenditure inelastic. However, fresh fruit is close to being unitary expenditure elastic. After allowing for curvature in the Engel function, U.S. fresh fruit demand is found to be more responsive to changes in income than in previous studies.

Suggested Citation

  • Mekonnen, Dawit Kelemework & Huang, Chung L. & Fonsah, Esendugue Greg, 2012. "Analysis of Fruit Consumption in the U.S. with a Quadratic AIDS Model," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119767, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea12:119767
    DOI: 10.22004/ag.econ.119767
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    References listed on IDEAS

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    1. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
    2. Muhammad, Andrew & Fonsah, Esendugue Greg & Zahniser, Steven, 2011. "Competiveness of Latin American Exports in the U.S. Banana Market," 2011 Annual Meeting, February 5-8, 2011, Corpus Christi, Texas 98365, Southern Agricultural Economics Association.
    3. Dawit Kelemework Mekonnen & Esendugue Greg Fonsah & Boris Borgotti, 2011. "US import demand for apple: source differentiated almost ideal demand system approach," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 4(4), pages 372-382.
    4. Nzaku, Kilungu & Houston, Jack E., 2009. "Analysis of U.S. Demand for Fresh Tropical Fruit and Vegetable Imports," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46850, Southern Agricultural Economics Association.
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    Cited by:

    1. Rejesus, Roderick M. & Safley, Charles D. & Strik, Bernadine C, 2014. "Demand and Welfare Impacts of a Potential Food Safety Event in the Blackberry Industry," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169452, Agricultural and Applied Economics Association.

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    Keywords

    Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Marketing;
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