An Assessment Of Dynamic Behavior In The U.S. Catfish Market: An Application Of The Generalized Dynamic Rotterdam Model
AbstractDynamic demand systems have been employed in a number of studies to account for habit formation and inventory adjustments in demand. Few studies have attempted to provide a theoretical foundation for the dynamic demand structures employed. Recently, Bushehri (2003) showed how a generalized dynamic Rotterdam model could be derived from the neoclassical intertemporal utility maximization problem; however, no empirical application is provided in his study. This paper provides an empirical application of the generalized dynamic Rotterdam model to the demand for processed catfish products in the U.S. The two-period dynamic Rotterdam model explained a significant amount of the variation in U.S. catfish demand and was preferred to the one-period and static models. Estimates suggest that buyers adjust short-run inventories such that the past sales negatively affect current sales. Given inventory adjustment behavior, demand was relatively more inelastic in the long-run.
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Bibliographic InfoPaper provided by Southern Agricultural Economics Association in its series 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia with number 45912.
Date of creation: 2009
Date of revision:
Dynamic; Rotterdam model; catfish; demand; partial adjustment; Demand and Price Analysis; Research Methods/ Statistical Methods; Q11; Q13;
Other versions of this item:
- Muhammad, Andrew & Jones, Keithly G., 2009. "An Assessment of Dynamic Behavior in the U.S. Catfish Market: An Application of the Generalized Dynamic Rotterdam Model," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 41(03), December.
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-01-10 (All new papers)
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