Measuring Impacts on Demand of Agricultural Commodity Promotion*

Ronald Raikes and William Vollink

Journal of Agricultural and Applied Economics, 1975, vol. 7, issue 2, 161-167

Abstract: Producer “checkoff” programs have been established for several agricultural commodities. Typically, at least part of the money collected is used to support commodity promotions. But decisions about support of promotions often are made with little information about expected impacts on demand. Studies of selected commodity promotions have provided estimates of promotions' impacts on intercepts of demand functions. But these studies have not provided information about impacts on other demand parameters; viz., the responsiveness of quantity demanded to changes in commodity price, prices of competing commodities or consumer income. The purpose of this paper is to suggest and illustrate a research procedure that provides estimates of a promotion's impacts on the demand function's intercept and on responsiveness of quantity demanded to changes in price, competing prices and income.

Date: 1975
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