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Estimation of Demand for Wheat by Classes for the United States and the European Union

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  • Samarendu Mohanty
  • E. Wesley F. Peterson
  • Darnell B. Smith

Abstract

In North America and Europe, wheat is a very important commodity that has been at the heart of trade disputes and policy conflicts. This study uses a dynamic Almost Ideal Demand System (AIDS) to estimate demand elasticities for wheat differentiated by classes, for the United States and the European Union (EU). The results suggest that in the U.S. market imported wheat is more price responsive than domestic wheat. In the EU, however, price responsiveness varies according to the quality of wheat rather than its national origin.

Suggested Citation

  • Samarendu Mohanty & E. Wesley F. Peterson & Darnell B. Smith, 1997. "Estimation of Demand for Wheat by Classes for the United States and the European Union," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 97-wp181, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:fpaper:97-wp181
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    1. Zhang, Caiping & Marsh, Thomas L., 2006. "Impacts of Gluten Imports on U.S. Food Wheat Use," 2006 Annual meeting, July 23-26, Long Beach, CA 21283, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Njonou, Rabelais Yankam & Frahan, Bruno Henry de & Surry, Yves R., 2002. "Testing Separability for Common Wheat Qualities in French Import Demand Market Using Aids and Rotterdam Demand Models," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24921, European Association of Agricultural Economists.
    3. Zhu, Manhong & Schmitz, Andrew & Schmtiz, Troy G., 2016. "Why Has not Genetically Modified Wheat Been Commercialized: A Game Theoretical Perspective," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230796, Southern Agricultural Economics Association.
    4. Frahan, Bruno Henry de & Tritten, Christian & Sumner, Daniel A., 2001. "Wheat Differentiation And Response To Policy Reform In The Eu," 2001 Annual meeting, August 5-8, Chicago, IL 20755, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Thomas L. Marsh, 2005. "Economic substitution for US wheat food use by class," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(3), pages 283-301, September.
    6. Frahan, Bruno Henry de & Tritten, Christian, 2002. "Differentiated Demand and Supply of Wheat under Alternative European Trade Policies," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24831, European Association of Agricultural Economists.
    7. Miljkovic, Dragan & Ripplinger, David & Shaik, Saleem, 2016. "Impact of biofuel policies on the use of land and energy in U.S. agriculture," Journal of Policy Modeling, Elsevier, vol. 38(6), pages 1089-1098.

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