Demand analysis with structural changes: Model and application to the US blueberry market

Ariel Soto‐Caro, Feng Wu, Tian Xia and Zhengfei Guan

Agribusiness, 2023, vol. 39, issue 4, 1100-1116

Abstract: This study proposes a generalized demand system accommodating structural changes endogenously and examines how increasing imports affect blueberry prices and shipment values in the US market. Specifically, we integrate a smooth transformation function into the nested synthetic inverse demand system model (SIDS). We show that the proposed approach performs better than the standard SIDS in the context of structural changes in imports in the US blueberry market. As the largest blueberry producer in the world, the United States has supplied half of the world's blueberries over the past decade. Imported blueberries from South American countries do not have large impacts on the US blueberry industry due to the difference in production seasons. But the fast‐growing imports from Mexico have had great impacts on the US market. Our simulation shows that a 100% increase in Mexican blueberry shipments will result in a loss of $20 million in US domestic production. [EconLit Citations: Q11, Q17].

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/agr.21815

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:wly:agribz:v:39:y:2023:i:4:p:1100-1116

Access Statistics for this article

Agribusiness is currently edited by Ronald W. Cotterill

More articles in Agribusiness from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().