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Characteristic Supplies and Demands in a Hedonic Framework: U.S. Market for Cotton Fiber Attributes
Author(s) -
Kenneth R. Bowman,
Ethridge Don E.
Publication year - 1992
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 - 10.2307/1243197
Subject(s) - commodity , economics , stage (stratigraphy) , econometrics , commodity market , supply and demand , agricultural economics , price equation , hedonic index , fiber , microeconomics , mathematics , price index , market economy , chemistry , geology , paleontology , organic chemistry , finance
Abstract Hedonic price analysis has frequently been used to determine agricultural commodity characteristics' values. While hedonic price theory consists of a two‐stage process, second‐stage commodity characteristics' equations have not been successfully estimated until now. The estimated system consisted of 11 first‐stage equations to determine cotton characteristics' values. The second stage consisted of 24 characteristic demand and 20 characteristic supply equations to model the underlying characteristic market structure. Cotton characteristic values were shown to vary across regions and over time as characteristic supplies and demands varied.