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Supply Response In The Northeastern Fresh Tomato Market

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  • Lopez, Rigoberto A.
  • Munoz, Arnold O.

Abstract

This paper examines the forces that affected the Northeastern fresh tomato supply in the post-WWII period. A simultaneous equation model is developed which incorporates a composite price expectation model, supply response, and factors affecting regional price. Findings reveal that data are consistent with the Rational Expectation Hypothesis. Urban pressure played a major role in shifting supply response while shipments from competing areas had a modest impact on regional production or price. The positive elasticity of producers' revenue with respect to local production highlights the aggregate benefits of increasing yields.

Suggested Citation

  • Lopez, Rigoberto A. & Munoz, Arnold O., 1987. "Supply Response In The Northeastern Fresh Tomato Market," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 16(1), pages 1-9, April.
    • Handle: RePEc:ags:nejare:28890
    DOI: 10.22004/ag.econ.28890
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    References listed on IDEAS

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    1. Goodwin, Thomas H & Sheffrin, Steven M, 1982. "Testing the Rational Expectations Hypothesis in an Agricultural Market," The Review of Economics and Statistics, MIT Press, vol. 64(4), pages 658-667, November.
    2. Wegge, Leon L. & Feldman, Mark, 1983. "Identifiability criteria for Muth-rational expectations models," Journal of Econometrics, Elsevier, vol. 21(2), pages 245-254, February.
    3. Wallis, Kenneth F, 1980. "Econometric Implications of the Rational Expectations Hypothesis," Econometrica, Econometric Society, vol. 48(1), pages 49-73, January.
    4. Swackhamer, Gene L., 1981. "Competitive Position of Northeast Agriculture," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 2), pages 1-8, October.
    5. Chern, Wen S. & Just, Richard E., 1978. "Econometric Analysis of Supply Response and Demand for Processing Tomatoes in California," Monographs, University of California, Davis, Giannini Foundation, number 251949, December.
    6. Rigoberto A. Lopez, 1986. "The Use of Composite Price Expectations In Supply Response Models," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 34(3), pages 455-474, November.
    7. Swackhamer, Gene L., 1981. "Competitive Position of Northeast Agriculture," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 10(2), pages 1-8, October.
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    Cited by:

    1. Weliwita, Ananda & Govindasamy, Ramu, 1997. "Supply Response In The Northeastern Fresh Tomato Market: Cointegration And Error Correction Analysis," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(2), pages 1-9, April.
    2. Lopez, Rigoberto A. & Adelaja, Adesoji O. & Andrews, Margaret S., 1987. "The Impact of Suburbanization on Agricultural Production Choices," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 269990, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Adelaja, Adesoji O. & Brumfield, Robin G. & Lininger, Kimberly, 1990. "Product Differentiation And State Promotion Of Farm Produce: An Analysis Of The Jersey Fresh Tomato," Journal of Food Distribution Research, Food Distribution Research Society, vol. 21(3), pages 1-14, September.

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    Keywords

    Demand and Price Analysis;

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