An Analysis of the Demand for Fresh Fruit in Scotland
The purpose of this study is to analyse the demand for fresh fruits in Scotland in order to provide evidence about their sensitivity to changes in prices and income. Six fresh fruit categories were studied using time series for the period 2006 to 2011: citrus, apples and pears, bananas, grapes soft fruit and a residual category, other fruits. The series were constructed from a consumer panel that reports weekly purchases by approximately 1,300 households and which allowed constructing thirteen periods of four weeks each year. The demand for fruits was modelled using a dynamic version of the Almost Ideal Demand System. Short term and long term conditional elasticities (Marshallian, Hicksian and expenditure) were estimated. The results from the long term elasticities indicated the demand for all the categories were sensitive to changes in prices. Grapes and soft fruits were most price elastic fruits. In addition, whilst all the expenditure elasticities were positive, the elasticity of citrus was greater than one, apple and pears, bananas and grapes were approximately one and soft fruit and other fresh fruits were less than one.
|Date of creation:||09 Jul 2013|
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Web page: http://www.sruc.ac.uk/info/120037/land_economy_and_environment
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- Durham, Catherine A. & Eales, James S., 2006.
"Demand Elasticities for Fresh Fruit at the Retail Level,"
2006 Annual meeting, July 23-26, Long Beach, CA
21099, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Catherine Durham & James Eales, 2010. "Demand elasticities for fresh fruit at the retail level," Applied Economics, Taylor & Francis Journals, vol. 42(11), pages 1345-1354.
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