IDEAS home Printed from https://ideas.repec.org/p/ags/aaea03/22122.html
   My bibliography  Save this paper

Demand for U.S. Lamb and Mutton: A Two Stage Differential Approach

Author

Listed:
  • Jones, Keithly G.
  • Hahn, William F.
  • Davis, Christopher G.

Abstract

Estimates of price and scale demand elasticities for lamb and mutton consumed in the United States are derived. The U.S. lamb and mutton consumption comprises primarily of domestic production, and imports from two countries-Australia and New Zealand. The Netherlands Central Bureau of Statistics (CBS) demand system derived by Keller and Van Driel (1985) is employed. The CBS model is preferred as it combines non-linear Engel curves with the simplicity of the Slutsky matrix and allows for the ease of implementing concavity and other restrictions. Empirical results for own-price elasticities of demand indicate that U.S. demand for Australian lamb demand is highly elastic while U.S. demand for New Zealand and domestic lamb was inelastic. The scale demand elasticity results indicate that if the U.S. increases total demand for lamb, Australia and New Zealand's share of total demand will more than proportionately increase while the U.S. share of total demand will decrease. The scale elasticities show that domestic lamb is an inferior good.

Suggested Citation

  • Jones, Keithly G. & Hahn, William F. & Davis, Christopher G., 2003. "Demand for U.S. Lamb and Mutton: A Two Stage Differential Approach," 2003 Annual meeting, July 27-30, Montreal, Canada 22122, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea03:22122
    DOI: 10.22004/ag.econ.22122
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/22122/files/sp03jo02.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.22122?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Giancarlo Moschini & Karl D. Meilke, 1989. "Modeling the Pattern of Structural Change in U.S. Meat Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(2), pages 253-261.
    2. Giancarlo Moschini & Daniele Moro & Richard D. Green, 1994. "Maintaining and Testing Separability in Demand Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(1), pages 61-73.
    3. T. Kesavan & Zuhair A. Hassan & Helen H. Jensen & Stanley R. Johnson, 1993. "Dynamics and Long-run Structure in U.S. Meat Demand," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 41(2), pages 139-153, July.
    4. Davis, George C. & Jensen, Kimberly L., 1994. "Two-Stage Utility Maximization And Import Demand Systems Revisited: Limitations And An Alternative," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(2), pages 1-16, December.
    5. BARTEN, Anton P., 1969. "Maximum likelihood estimation of a complete system of demand equations," LIDAM Reprints CORE 34, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Barten, A. P., 1969. "Maximum likelihood estimation of a complete system of demand equations," European Economic Review, Elsevier, vol. 1(1), pages 7-73.
    7. Pollak, Robert A & Wales, Terrence J, 1969. "Estimation of the Linear Expenditure System," Econometrica, Econometric Society, vol. 37(4), pages 611-628, October.
    8. P. Y. Chen & M. M. Veeman, 1991. "An Almost Ideal Demand System Analysis for Meats with Habit Formation and Structural Change," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 39(2), pages 223-235, July.
    9. Purcell, Wayne D., 1989. "Analysis of Demand for Beef, Pork, Lamb and Broilers: Implications for the Future," Staff Papers 232388, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.
    10. Julian M. Alston & Colin A. Carter & Richard Green & Daniel Pick, 1990. "Whither Armington Trade Models?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(2), pages 455-467.
    11. Byrne, Patrick J. & Capps, Oral, Jr. & Williams, Gary W., 1993. "U.S. Demand For Lamb: The Other Red Meat," Journal of Food Distribution Research, Food Distribution Research Society, vol. 24(1), pages 1-9, February.
    12. Gordon Anderson & Richard Blundell, 1983. "Testing Restrictions in a Flexible Dynamic Demand System: An Application to Consumers' Expenditure in Canada," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 50(3), pages 397-410.
    13. Keller, W.J. & Van Driel, J., 1985. "Differential consumer demand systems," European Economic Review, Elsevier, vol. 27(3), pages 375-390.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muhammad, Andrew & Jones, Keithly G. & Hahn, William F., 2004. "U.S. Demand For Imported Lamb By Country: A Two-Stage Differential Production Approach," 2004 Annual Meeting, February 14-18, 2004, Tulsa, Oklahoma 34690, Southern Agricultural Economics Association.
    2. Mutondo, Joao E. & Henneberry, Shida Rastegari, 2007. "A Source-Differentiated Analysis of U.S. Meat Demand," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(3), pages 1-19, December.
    3. Muhammad, Andrew & Jones, Keithly G. & Hahn, William F., 2007. "The Impact of Domestic and Import Prices on U.S. Lamb Imports: A Production System Approach," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(2), pages 1-11, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Moschini, G. & Moro, D., 1993. "A Food demand System for Canada," Papers 1-93, Gouvernement du Canada - Agriculture Canada.
    3. Yadavalli, Anita & Jones, Keithly, 2014. "Does media influence consumer demand? The case of lean finely textured beef in the United States," Food Policy, Elsevier, vol. 49(P1), pages 219-227.
    4. Paul Cashin, 1991. "A Model Of The Disaggregated Demand For Meat In Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 35(3), pages 263-283, December.
    5. Fabiosa, Jacinto Fama, 1993. "Essays in dynamic adjustment, structural change and data analysis: applications to the demand for meat in the US," ISU General Staff Papers 1993010108000011815, Iowa State University, Department of Economics.
    6. Sulgham, Anil K. & Zapata, Hector O., 2006. "A Dynamic Approach to Estimate Theoretically Consistent US Meat Demand System," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35441, Southern Agricultural Economics Association.
    7. Muhammad, Andrew & Ngeleza, Guyslain K., 2009. "European Union preferential trade agreements with developing countries and their impact on Colombian and Kenyan carnation exports to the United Kingdom:," IFPRI discussion papers 862, International Food Policy Research Institute (IFPRI).
    8. Adrian R. Fleissig, 2016. "Changing Trends in U.S. Alcohol Demand," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 44(3), pages 263-276, September.
    9. Tullaya Boonsaeng & Michael K. Wohlgenant, 2009. "A Dynamic Approach to Estimating and Testing Separability in U.S. Demand for Imported and Domestic Meats," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(1), pages 139-157, March.
    10. Chia-Lin Chang & Thanchanok Khamkaew & Michael McAleer, 2010. "Estimating Price Effects in an Almost Ideal Demand Model of Outbound Thai Tourism to East Asia," CIRJE F-Series CIRJE-F-735, CIRJE, Faculty of Economics, University of Tokyo.
    11. Taha, Fawzi A. & Hahn, William F., 2012. "Modeling South Africa’s Meat Import Demand System," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124582, Agricultural and Applied Economics Association.
    12. Walters, Lurleen M. & Harvey, David & Jones, Keithly G., 2015. "To Have or Not to Have the Common External Tariff: The CARICOM Countries Conundrum," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(A), pages 1-18, July.
    13. Jones, Keithly G. & Harvey, David J., 2006. "Evaluating the Economic Impact of Countervailing Duties on United States Warm Water Shrimp Imports," 2006 Annual meeting, July 23-26, Long Beach, CA 21118, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Laura Spierdijk & Sherrill Shaffer & Tim Considine, 2016. "Adapting to changing input prices in response to the crisis: The case of US commercial banks," CAMA Working Papers 2016-15, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    15. J. M. Gil & B. Dhehibi & M. Ben Kaabia & A. M. Angulo, 2004. "Non-stationarity and the import demand for virgin olive oil in the European Union," Applied Economics, Taylor & Francis Journals, vol. 36(16), pages 1859-1869.
    16. Barten, Anton P. & McAleer, Michael, 1997. "Comparaison de la performance du point de vue empirique de systèmes de demandes alternatifs," L'Actualité Economique, Société Canadienne de Science Economique, vol. 73(1), pages 27-45, mars-juin.
    17. Tridimas, George, 2000. "The analysis of consumer demand in Greece. Model selection and dynamic specification," Economic Modelling, Elsevier, vol. 17(4), pages 455-471, December.
    18. Wong, Lucille & Selvanathan, Eliyathamby A. & Selvanathan, Saroja, 2015. "Modelling the meat consumption patterns in Australia," Economic Modelling, Elsevier, vol. 49(C), pages 1-10.
    19. William A. Barnett & Isaac Kalonda Kanyama, 2013. "Time-varying parameters in the almost ideal demand system and the Rotterdam model: will the best specification please stand up?," Applied Economics, Taylor & Francis Journals, vol. 45(29), pages 4169-4183, October.
    20. Pablo del Río & Desiderio Romero & Marta Jorge & Mercedes Burguillo, 2012. "Territorial differences for transport fuel demand in Spain: an econometric study," Chapters, in: Larry Kreiser & Ana Yábar Sterling & Pedro Herrera & Janet E. Milne & Hope Ashiabor (ed.), Green Taxation and Environmental Sustainability, chapter 4, pages 56-68, Edward Elgar Publishing.

    More about this item

    Keywords

    Demand and Price Analysis;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea03:22122. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.