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Structural Change in Factor Demand Relationships in the U.S. Food and Kindred Products Industry
Author(s) -
Goodwin Barry K.,
Brester Gary W.
Publication year - 1995
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 - 10.2307/1243890
Subject(s) - economics , structural change , multivariate statistics , food industry , econometrics , manufacturing , substitution (logic) , raw material , microeconomics , agricultural economics , industrial organization , business , food science , computer science , marketing , mathematics , statistics , chemistry , macroeconomics , organic chemistry , programming language
This analysis utilizes multivariate gradual switching regression techniques and Bayesian inferential procedures to evaluate structural change in factor demand relationships in the food manufacturing industry. Food materials are included as an input into the food manufacturing industry. The results confirm a significant gradual structural change that initiated in 1980. Price elasticities indicate that the demands for raw food materials and energy have become more elastic while the demand for labor has become less elastic. Morishima elasticities of substitution indicate that nearly all factors are substitutes and that the degree of substitutability has significantly increased in recent years.