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An Examination of Inverse Demand Models: An Application to the U.S. Crawfish Industry

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  • Lee, Young-Jae
  • Kennedy, P. Lynn

Abstract

This study analyzes quantity impacts of imported crawfish tailmeat on Louisiana crawfish tailmeat prices, and demonstrates the statistical validity and proper interpretation of cross substitution within inverse demand systems. Among five inverse demand systems, the Differential Inverse National Bureau of Research (DINBR) model shows no violation of econometric assumptions for the data analyzed. By using Allais coefficients proposed by Barten and Bettendorf (1989), we show substitutability among the five fish species.

Suggested Citation

  • Lee, Young-Jae & Kennedy, P. Lynn, 2008. "An Examination of Inverse Demand Models: An Application to the U.S. Crawfish Industry," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 37(2), pages 1-14.
    • Handle: RePEc:ags:arerjl:45661
    DOI: 10.22004/ag.econ.45661
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    Cited by:

    1. Kehar Singh & Madan M. Dey & Prasanna Surathkal, 2014. "Seasonal and Spatial Variations in Demand for and Elasticities of Fish Products in the United States: An Analysis Based on Market-Level Scanner Data," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(3), pages 343-363, September.
    2. Lee, Young-Jae & Kennedy, P. Lynn, 2013. "Quantity And Exchange Rate Effects On U.S. Trout Prices," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142133, Southern Agricultural Economics Association.
    3. Lee, Min-Yang A. & Thunberg, Eric M., 2012. "An Inverse Demand System for New England Groundfish: Welfare Analysis of the Transition to Catch Share Management," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 123879, Agricultural and Applied Economics Association.
    4. Sean Pascoe & Peggy Schrobback & Eriko Hoshino & Robert Curtotti, 2023. "Impact of changes in imports and farmed salmon on wild-caught fish prices in Australia," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(2), pages 335-359.
    5. Huang, Pei, 2014. "An Inverse Demand System for Blue Crab in the Chesapeake Bay: Endogeneity and Seasonality," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169827, Agricultural and Applied Economics Association.
    6. Eric Sjöberg, 2015. "Pricing on the Fish Market--Does Size Matter?," Marine Resource Economics, University of Chicago Press, vol. 30(3), pages 277-296.
    7. Pei Huang, 2015. "An Inverse Demand System for the Differentiated Blue Crab Market in Chesapeake Bay," Marine Resource Economics, University of Chicago Press, vol. 30(2), pages 139-156.
    8. Lee, Young-Jae & Kennedy, P. Lynn & Hilbun, Brian M., 2010. "A Demand System Analysis of the U.S. Trout Market," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 56414, Southern Agricultural Economics Association.
    9. Roheim, Cathy A. & Zhang, Dengjun, 2018. "Sustainability certification and product substitutability: Evidence from the seafood market," Food Policy, Elsevier, vol. 79(C), pages 92-100.
    10. Sooriyakumar Krishnapillai & Sarujan Sathiyamoorthy & Anushiya Sireeranhan, 2020. "Impact of Milk Powder Imports on Local Milk Industry and Consumers Welfare in Sri Lanka," International Journal of Economics and Financial Issues, Econjournals, vol. 10(5), pages 165-170.

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    Keywords

    Demand and Price Analysis;

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