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Complete Flexibility Systems And The Stationarity Of U.S. Meat Demands

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  • Dahlgran, Roger A.
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    A Rotterdam demand model is used to detect evidence of structural change in beef, pork, and chicken demands. The demand model is partially inverted prior to estimation to account for meat supply fixity. Estimation uses a likelihood maximization routine applied to 1950 through 1985 annual data. The results suggest severe disruption in the meat markets in the 1970s. A comparison of the 1980s and the 1960s elasticity structures reveals that income and cross-price elasticities are nearly the same but direct price elasticities are lower and are trending toward even more inelasticity. Implications for pricing and risk management are discussed.

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    Article provided by Western Agricultural Economics Association in its journal Western Journal of Agricultural Economics.

    Volume (Year): 12 (1987)
    Issue (Month): 02 (December)

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    Handle: RePEc:ags:wjagec:32223
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    1. Haidacher, Richard C., 1983. "Assessing Structural Change in the Demand for Food Commodities," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 15(01), pages 31-37, July.
    2. Moschini, GianCarlo & Meilke, Karl D., 1984. "Parameter Stability And The U.S. Demand For Beef," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 9(02), December.
    3. Haidacher, Richard C., 1983. "Assessing Structural Change In The Demand For Food Commodities," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 15(01), July.
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