Title: US import demand for apple: source differentiated almost ideal demand system approach

Authors: Dawit Kelemework Mekonnen; Esendugue Greg Fonsah; Boris Borgotti

Addresses: Department of Agricultural and Applied Economics, University of Georgia, 305 Conner Hall, Athens, Georgia 30602, USA. ' Department of Agricultural and Applied Economics, University of Georgia, 15 RDC RD, P.O. Box 1209, Tifton, Georgia 31793, USA. ' Eleve Ingenieur Agronome 2eme annee, ENSAT Avenue de l'Agrobiopole, B.P. 32607 – Auzeville-Tolosane, 31326 – Castanet-Tolosan Cedex, France

Abstract: We adopted a restricted version of Source Differentiated Almost Ideal Demand System (RSDAIDS) to analyse the US import demand for fresh apples, apple juice and other processed apples after differentiating each type of apple by import origins. Seasonality and time trend variables were included in the RSDAIDS model and the general demand restrictions of adding-up, homogeneity and slutsky symmetry were imposed. The system of equations is then estimated using Seemingly Unrelated Regression (SUR) and the results of the estimation are presented in the form of parameter estimates, as well as price and expenditure elasticities.

Keywords: fruit; fresh apples; SDAIDS; demand estimation; USA; United States; import demands; imports; RSDAIDS; restricted source differentiated almost ideal demand system; apple juice; processed apples; import origins; seasonality; seasons; seasonal variables; time trends; time variables; demand restrictions; adding-up; homogeneity; slutsky symmetry; SURE; seemingly unrelated regression equations; SUR; parameter estimates; price elasticities; expenditure elasticities; globalisation; trade; global markets.

DOI: 10.1504/IJTGM.2011.042862

International Journal of Trade and Global Markets, 2011 Vol.4 No.4, pp.372 - 382

Received: 25 Aug 2010
Accepted: 14 Nov 2010
Published online: 08 Apr 2015 *

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