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A Seasonal Inverse Almost Ideal Demand System for North American Fresh Tomatoes

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  • Jason H. Grant
  • Dayton M. Lambert
  • Kenneth A. Foster

Abstract

Increased fresh tomato trade has prompted a number of trade disputes between the United States, Canada, and Mexico. One precondition of an antidumping dispute is meeting the “likeness of product” criterion. However, fresh tomato shipments and imports are highly seasonal, suggesting that the degree of substitutability (or product likeness) may depend fundamentally on whether fresh tomato varieties are in‐ or out‐of‐season. We develop a seasonally adjusted inverse demand system using Canadian and Mexican monthly import data along with U.S. state shipping data to address both seasonality and product substitutability in the fresh tomato market. We find that market equilibrium and the degree of product substitution are affected by seasonality and product availability in the consumer choice set. Le commerce accru de la tomate fraîche suscite des différends commerciaux entre les États‐Unis, le Canada et le Mexique. L'une des préconditions d'un différend en matière d'antidumping est liée au respect du critère de la « similarité du produit ». Toutefois, les expéditions et les importations de tomate fraîche sont très saisonnières, ce qui laisse supposer que le degré de substituabilité (ou de similarité du produit) puisse reposer fondamentalement sur le fait qu'il s'agisse ou non de variétés de tomate fraîche pleine saison ou hors‐saison. Nous avons mis au point un système désaisonnalisé de la demande inverse utilisant des données mensuelles sur les importations canadiennes et mexicaines et des données sur les expéditions des États‐Unis pour étudier la saisonnalité et la substituabilité dans le marché de la tomate fraîche. Nous sommes arrivés à la conclusion que la saisonnalité et la disponibilité des produits offerts au consommateur influent sur l'équilibre du marché et le degré de substitution du produit.

Suggested Citation

  • Jason H. Grant & Dayton M. Lambert & Kenneth A. Foster, 2010. "A Seasonal Inverse Almost Ideal Demand System for North American Fresh Tomatoes," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(2), pages 215-234, June.
    • Handle: RePEc:bla:canjag:v:58:y:2010:i:2:p:215-234
    DOI: 10.1111/j.1744-7976.2009.01176.x
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