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The U.S. Apple Industry: Econometric Model and Projections

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  • Willett, Lois Schertz

Abstract

A dynamic model of the U.S. apple industry, including relationships for bearing acres, production, utilization, and allocation to the fresh, canned, frozen, juice, dried and other markets, is specified. Demands for each of these markets are modeled. Model coefficients are obtained using Zellner's seemingly unrelated regression procedure and data from 1971 through 1990. Elasticities and flexibilities are compared with other studies. Projections indicate that price fluctuations will continue in the industry when acreage is held at 1990 levels. A ten percent increase in fresh exports strengthens all apple prices. However, a ten percent decrease in the price of juice imports mitigates some of this effect.

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  • Willett, Lois Schertz, 1993. "The U.S. Apple Industry: Econometric Model and Projections," Agricultural and Resource Economics Review, Cambridge University Press, vol. 22(2), pages 137-149, October.
    • Handle: RePEc:cup:agrerw:v:22:y:1993:i:02:p:137-149_00
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    Cited by:

    1. Tozer, Peter R. & Marsh, Thomas L., 2018. "Dynamic regional model of the US apple industry: Consequences of supply or demand shocks due to pest or disease outbreaks and control," Agricultural Systems, Elsevier, vol. 164(C), pages 252-263.

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