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Demand for U.S. Lamb and Mutton: A Two Stage Differential Approach

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  • Jones, Keithly G.
  • Hahn, William F.
  • Davis, Christopher G.

Abstract

Estimates of price and scale demand elasticities for lamb and mutton consumed in the United States are derived. The U.S. lamb and mutton consumption comprises primarily of domestic production, and imports from two countries-Australia and New Zealand. The Netherlands Central Bureau of Statistics (CBS) demand system derived by Keller and Van Driel (1985) is employed. The CBS model is preferred as it combines non-linear Engel curves with the simplicity of the Slutsky matrix and allows for the ease of implementing concavity and other restrictions. Empirical results for own-price elasticities of demand indicate that U.S. demand for Australian lamb demand is highly elastic while U.S. demand for New Zealand and domestic lamb was inelastic. The scale demand elasticity results indicate that if the U.S. increases total demand for lamb, Australia and New Zealand's share of total demand will more than proportionately increase while the U.S. share of total demand will decrease. The scale elasticities show that domestic lamb is an inferior good.

Suggested Citation

  • Jones, Keithly G. & Hahn, William F. & Davis, Christopher G., 2003. "Demand for U.S. Lamb and Mutton: A Two Stage Differential Approach," 2003 Annual meeting, July 27-30, Montreal, Canada 22122, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea03:22122
    DOI: 10.22004/ag.econ.22122
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    Cited by:

    1. Mutondo, Joao E. & Henneberry, Shida Rastegari, 2007. "A Source-Differentiated Analysis of U.S. Meat Demand," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(3), pages 1-19, December.
    2. Muhammad, Andrew & Jones, Keithly G. & Hahn, William F., 2007. "The Impact of Domestic and Import Prices on U.S. Lamb Imports: A Production System Approach," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(2), pages 1-11, October.
    3. Muhammad, Andrew & Jones, Keithly G. & Hahn, William F., 2004. "U.S. Demand For Imported Lamb By Country: A Two-Stage Differential Production Approach," 2004 Annual Meeting, February 14-18, 2004, Tulsa, Oklahoma 34690, Southern Agricultural Economics Association.

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