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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.

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Bibliographic Info

Paper provided by Southern Agricultural Economics Association in its series 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama with number 119767.

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Date of creation: Feb 2012
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Handle: RePEc:ags:saea12:119767

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Related research

Keywords: Demand estimation; U.S fruit consumption; Quadratic AIDS; AIDS; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Marketing;

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  1. 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.
  2. 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.
  3. 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.
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