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The Poultry Market: Demand Stability and Industry Structure
Author(s) -
Thurman Walter N.
Publication year - 1987
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1241303
Subject(s) - endogeneity , economics , derived demand , independence (probability theory) , stability (learning theory) , microeconomics , estimation , scale (ratio) , market demand schedule , poultry meat , industrial organization , demand curve , econometrics , agricultural economics , business , mathematics , statistics , computer science , chemistry , management , food science , quantum mechanics , machine learning , physics
The stability of the demand for poultry meat and specification issues in its estimation are explored. The analysis concludes that the demand for poultry meat shifted out in the early 1970s. At the same time, the demand relationship between poultry and pork changed from substitution to independence. A second conclusion is that poultry price is predetermined for demand in annual U.S. data, while quantity is not. A predetermined price suggests several market structures. Exogeneity tests are performed to distinguish among them. The results are consistent with a competitive, constant returns‐to‐scale‐industry facing elastic factor supplies.