The Economics Associated with Crawfish Production from Louisiana's Atchafalaya Basin 1

Unpredictable water levels for the Atchafalaya River resulting from man's efforts to prevent flooding in South Louisiana lead to an unstable market for Louisiana's annual crawfish production. Empirical models presented show that yields from the basin can be estimated on a monthly basis using bimonthly changes in water level, unemployment rates, and crawfish harvests from ponds. The monthly demand model for basin crawfish yielded a price flexibility of –0.059 and a corresponding price elasticity of –16.94. These empirical results support hypotheses that substitutes for crawfish are available to consumers. Uncertain yields from the basin due to the sort of water level fluctuations documented in this study suggest that investment in this area of the Louisiana crawfish industry will continue to be hampered.