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A Dynamic Application of the AIDS Model to Import Demand for Tropical Fresh Fruits in the USA

Kilungu Nzaku, Jack E. Houston and Esendugue Fonsah ()

No 126721, 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil from International Association of Agricultural Economists

Abstract: We estimate a dynamic version of an almost ideal demand system (AIDS) model for U.S.A. imports of fresh tropical fruits: bananas, pineapples, avocadoes, papayas, mangoes/guavas, grapes and other fresh fruit imports. An error correction model specification is justified after unit root and cointegration test results confirm nonstationarity and cointegration of the data. Estimated income elasticities show that fresh grapes and other fresh fruit imports appear to be considered luxury commodities. All own-price elasticities were negative and significant. While imported bananas, pineapples, U.S.A. grapes and other fresh fruit were quite inelastic, demand for papayas and mangoes/guavas were elastic. Fresh fruits that are shown to be complementary to imported fruits include bananas, imported grapes, U.S.A. grapes and avocados, and imported avocados/other fresh fruits. Key

Keywords: Food Consumption/Nutrition/Food Safety; Research Methods/ Statistical Methods (search for similar items in EconPapers)
Pages: 25
Date: 2012-06-29
New Economics Papers: this item is included in nep-agr
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae12:126721

DOI: 10.22004/ag.econ.126721

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