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Factors Influencing Changes In Potato And Potato Substitute Demand

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  • Richards, Timothy J.
  • Kagan, Albert
  • Gao, Xiaoming

Abstract

Despite the rapid rise in complex carbohydrate consumption over the last twenty-five years, fresh potato consumption has fallen by over 50%. Fresh potato growers and retailers alike need to know whether these changes reflect consumer responses to changing relative prices or incomes, or whether they are due to changes in consumer tastes. This paper uses a linear approximation almost ideal demand system (LA/AIDS) to investigate the effect of relative prices, expenditures, and a set of socioeconomic variables on complex carbohydrate demand. Estimation results show that the socioeconomic variables explain some of the changes in demand, but a significant amount remains as evidence of a change in consumer tastes.

Suggested Citation

  • Richards, Timothy J. & Kagan, Albert & Gao, Xiaoming, 1997. "Factors Influencing Changes In Potato And Potato Substitute Demand," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(1), pages 1-15, April.
    • Handle: RePEc:ags:arerjl:31359
    DOI: 10.22004/ag.econ.31359
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    1. Shiptsova, Rimma & Goodwin, Harold L., Jr. & Holcomb, Rodney B., 2004. "Household Expenditure Patterns for Carbohydrate Sources in Russia," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(2), pages 1-12, August.
    2. Hine, Susan E. & Loureiro, Maria L. & Meyer, Susan E., 2001. "Marketing Colorado Potatoes As A Value-Added Product: A Case Study," Journal of Food Distribution Research, Food Distribution Research Society, vol. 32(3), pages 1-9, November.
    3. Hsieh, Ming- Feng & Mitchell, Paul D. & Stiegert, Kyle W., 2007. "Demand for Organic and Conventional Potatoes," Working Papers 201522, University of Wisconsin-Madison, Department of Agricultural and Applied Economics, Food System Research Group.
    4. Ming-Feng Hsieh & Paul D. Mitchell & Kyle W. Stiegert, 2009. "Potato demand in an increasingly organic marketplace," Agribusiness, John Wiley & Sons, Ltd., vol. 25(3), pages 369-394.
    5. Goodwin, W. & Guenthner, J. & McIntosh, Christopher R. & Johnson, A. & Watson, P. & Thornton, M., 2012. "Economic Impacts of Increasing the Minimum Size for Idaho Fresh Potatoes," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(3), November.

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