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Functional Forms and Farm-Level Demand for Pecans by Variety

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  • Okunade, Albert A.
  • Cochran, Mark J.

Abstract

Recent developments in the U.S. pecan industry appear to limit the utility of past research. The importance of pecan variety has emerged as an issue which could alter past results. The linear and double-log models previously fitted to all-pecans (averaged) data may be too restrictive and hence, are less useful for variety-specific analysis. Past research also analyzed price turning points using nominal data. This study investigated functional form and data-averaging problems by fitting separate flexible Box-Cox price-dependent models for all-pecans and each variety of pecans (1970/71-1988/89 deflated data). Results indicate: other nuts substitute for different pecan varieties, estimated all-pecans price flexibility is biased and clouds variety-specific flexibilities, and restrictive functional forms are inappropriate.

Suggested Citation

  • Okunade, Albert A. & Cochran, Mark J., 1991. "Functional Forms and Farm-Level Demand for Pecans by Variety," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 23(2), pages 95-102, December.
    • Handle: RePEc:cup:jagaec:v:23:y:1991:i:02:p:95-102_01
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    1. Sande, Doris N. & Mullen, Jeffrey D. & Nzaku, Kilungu, 2009. "Amenity benefits and public policy: An application to the Georgia Pecan Industry," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46851, Southern Agricultural Economics Association.
    2. Wojciech Florkowski & Camilo Sarmiento, 2005. "The examination of pecan price differences using spatial correlation estimation," Applied Economics, Taylor & Francis Journals, vol. 37(3), pages 271-278.
    3. Moore, Eli D. & Williams, Gary W., 2008. "Is the Texas Pecan Checkoff Program Working?," Reports 90497, Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center.
    4. Park, Timothy A. & Florkowski, Wojciech J., 1999. "Demand and Quality Uncertainty in Pecan Purchasing Decisions," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 31(1), pages 29-39, April.
    5. Jee W. Hwang & Okmyung Bin, 2019. "Effects Of Changes In Climatic Conditions On New Mexico Pecan Production, Price, And Cash Receipts," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 10(02), pages 1-11, May.

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