Effects of Price and Quality Differences in Source Differentiated Beef on Market Demand

Young-Jae Lee and P. Lynn Kennedy

Journal of Agricultural and Applied Economics, 2009, vol. 41, issue 01, 12

Abstract: In order to estimate demand elasticities of source differentiated beef in South Korea, this study used the quantity of an endogenous demand system derived through maximizing the economic welfare of market participants including local beef consumers and local and foreign beef suppliers. The demand system is then weighted with respect to quality adjustment parameters to identify the effects of quality differences in source differentiated beef on market demand. As implied by the high relative price of locally produced ‘‘Hanwoo’’ beef, substitutability between local and imported beef is shown to be very weak and the own price elasticity of South Korean beef is shown to be inelastic. Related to quality differences between source differentiated beef, South Korean beef consumers show a preference for Australian beef relative to U.S. and Canadian beef, perhaps due to BSE concerns.

Keywords: Agribusiness; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Livestock Production/Industries (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/48752/files/jaae151.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:joaaec:48752

DOI: 10.22004/ag.econ.48752

Access Statistics for this article

More articles in Journal of Agricultural and Applied Economics from Southern Agricultural Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().