Changing Meat Demand Structure in the United States: Evidence from a Price Flexibility Analysis

Roger A. Dahlgran

Review of Agricultural Economics, 1988, vol. 10, issue 2, 165-176

Abstract: A flexibility system for beef, pork, and chicken is estimated in accordance with a theoretical, income-constrained utility maximization model of consumer behavior subject to fixed quantities. The cumulative sum of squares technique is generalized for equation systems and used to detect structural change in retail meat demands. The findings suggest, (1) red meat demands have become more variable, and (2) cross-price flexibilities for beef, pork and chicken have increased in absolute value which supports the hypothesis that chicken has become a closer substitute for beef and pork in the post-1973 period.

Date: 1988
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