Premium
TEXTILE FIBRE SUBSTITUTION AND RELATIVE PRICES
Author(s) -
Minford Patrick
Publication year - 1975
Publication title -
australian journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 0004-9395
DOI - 10.1111/j.1467-8489.1975.tb00157.x
Subject(s) - substitution (logic) , textile , relative price , economics , elasticity of substitution , elasticity (physics) , econometrics , function (biology) , production (economics) , materials science , monetary economics , composite material , microeconomics , computer science , biology , evolutionary biology , programming language
The elasticity of substitution between textile fibres is investigated within a CES production function in which the fibres are grouped according to degree of substitutability. Disaggregated data for U.S. textile usage in the post‐war period are examined and the elasticities estimated are generally above unity. The conclusion is reached that, while technical change and diffusion may have explained changing fibre shares in certain, usually specialized end‐uses and contributed to the explanation in others, in most end‐uses relative price change has been an important factor.