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Testing Structural Changes in the U.S. Whitefish Import Market: An Inverse Demand System Approach

Frank Asche and Dengjun Zhang

Agricultural and Resource Economics Review, 2013, vol. 42, issue 3, 453-470

Abstract: The seafood market has changed substantially in recent decades, becoming increasingly globalized. This has led to introduction of new species and new sources of fish in most markets. We estimate a seafood demand system that, unlike models in previous studies, accounts for potential structural shifts caused by these market changes. We investigate the impact of tilapia as a new species and China as a new source on demand for imported whitefish in the United States. The results indicate that price flexibilities change substantially over time and that the structural shift takes place over a prolonged period.

Date: 2013
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