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A Composite System Demand Analysis For Fresh Fruits And Vegetables In The United States

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  • You, Zhikang
  • Epperson, James E.
  • Huang, Chung L.

Abstract

Price and expenditure elasticities at retail level for 11 fresh fruits and 10 fresh vegetables were estimated by employing a composite demand system approach and using annual data. Most fresh fruits and vegetables were found to respond significantly to changes in their own prices but insignificantly to changes in total expenditures. The demand for fresh fruit group appeared to have had a clear upward trend since 1973. However, no significant trends were found in the demands for individual fresh fruits or vegetables. The study partially incorporated the interdependent demand relationships between fresh fruits (vegetables) and all other commodities, yet effectively avoided the problem of insufficient degrees of freedom.

Suggested Citation

  • You, Zhikang & Epperson, James E. & Huang, Chung L., 1996. "A Composite System Demand Analysis For Fresh Fruits And Vegetables In The United States," Journal of Food Distribution Research, Food Distribution Research Society, vol. 27(3), October.
  • Handle: RePEc:ags:jlofdr:27894
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    File URL: http://purl.umn.edu/27894
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    References listed on IDEAS

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    1. Chien, M. C. & Epperson, J. E., 1990. "An Analysis of the Competitiveness of Southeastern Fresh Vegetable Crops Using Quadratic Programming," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 22(02), pages 57-62, December.
    2. Choi, Seungmook & Sosin, Kim, 1992. "Structural Change in the Demand for Money," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 24(2), pages 226-238, May.
    3. Epperson, J.E. & Lei, L.F., 1989. "A Regional Analysis of Vegetable Production with Changing Demand for Row Crops Using Quadratic Programming," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 21(01), pages 87-96, July.
    4. Huang, Kuo S & Haidacher, Richard C, 1983. "Estimation of a Composite Food Demand System for the United States," Journal of Business & Economic Statistics, American Statistical Association, vol. 1(4), pages 285-291, October.
    5. Huang, Kuo S., 1985. "U.S. Demand for Food: A Complete System of Price and Income Effects," Technical Bulletins 157014, United States Department of Agriculture, Economic Research Service.
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    Citations

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    Cited by:

    1. Dong, Diansheng & Lin, Biing-Hwan, 2009. "Fruit and Vegetable Consumption by Low-Income Americans: Would a Price Reduction Make a Difference?," Economic Research Report 55835, United States Department of Agriculture, Economic Research Service.
    2. Weatherspoon, Dave D. & Dembele, Assa S. & Weatherspoon, Lorraine J. & Coleman, Marcus A. & Oehmke, James F., 2012. "Price and Expenditure Elasticities for Vegetables in an Urban Food Desert," 2012 AAEA/EAAE Food Environment Symposium, May 30-31, Boston, MA 123392, Agricultural and Applied Economics Association.
    3. Nzaku, Kilungu & Houston, Jack E. & Fonsah, Esendugue Greg, 2012. "A Dynamic Application of the AIDS Model to Import Demand for Tropical Fresh Fruits in the USA," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126721, International Association of Agricultural Economists.
    4. Sumner, Daniel A. & Lee, Hyunok & Hallstrom, Daniel G., 1999. "Implications of trade reform for agricultural markets in northeast Asia: a Korean example," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 21(3), December.
    5. Jose-Maria Garcia-Alvarez-Coque & Victor Martinez-Gomez & Miquel Villanueva, 2010. "Seasonal protection of F&V imports in the EU: impacts of the entry price system," Agricultural Economics, International Association of Agricultural Economists, vol. 41(2), pages 205-218, March.
    6. Okrent, Abigail M. & Alston, Julian M., 2011. "Demand for Food in the United States: A Review of Literature, Evaluation of Previous Estimates, and Presentation of New Estimates of Demand," Monographs, University of California, Davis, Giannini Foundation, number 251908.
    7. Lopez, Jose A. & Peckham, Jared A., 2016. "An Analysis of Fresh Vegetables in the Dallas-Fort Worth Metropolitan Area," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229765, Southern Agricultural Economics Association.
    8. Nzaku, Kilungu & Houston, Jack E., 2009. "Dynamic Estimation of U.S. Demand for Fresh Vegetable Imports," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 52209, Agricultural and Applied Economics Association.
    9. Nzaku, Kilungu & Houston, Jack E. & Fonsah, Esendugue Greg, . "Analysis of U.S. Demand for Fresh Fruit and Vegetable Imports," Journal of Agribusiness, Agricultural Economics Association of Georgia.
    10. Steele, Marie & Weatherspoon, Dave, 2016. "Demand for Varied Fruit and Vegetable Colors," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235912, Agricultural and Applied Economics Association.
    11. Durham, Catherine A. & Johnson, Aaron J. & McFetridge, Marc V., 2007. "Marketing-Management Impacts on Produce Sales," Journal of Food Distribution Research, Food Distribution Research Society, vol. 38(2), July.
    12. Widenhorn, Andreas & Salhofer, Klaus, 2014. "Using a Generalized Differenced Demand Model to Estimate Price and Expenditure Elasticities for Milk and Meat in Austria," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 63(2).

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    Keywords

    Demand and Price Analysis;

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