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An analysis of apple supply response

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  • Devadoss, Stephen
  • Luckstead, Jeff

Abstract

An empirical analysis of apple supply response is undertaken by modeling new plantings, removals, and yield. The important determinants of plantings are apple profits, cherry profits, weather, and lagged investment. These variables are highly significant, underscoring their importance in determining new planting decisions. In the removals equation, expected short-run revenues of apples and peaches were the important determinants, and the signs of the estimated coefficients for these variables are consistent with a priori expectations. For the yield equation, price and weather variables are significant, highlighting their relevance in determining apple yield.

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  • Devadoss, Stephen & Luckstead, Jeff, 2010. "An analysis of apple supply response," International Journal of Production Economics, Elsevier, vol. 124(1), pages 265-271, March.
    • Handle: RePEc:eee:proeco:v:124:y:2010:i:1:p:265-271
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    3. 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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