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Factors Influencing Changes in Potato and Potato Substitute Demand

Published online by Cambridge University Press:  15 September 2016

T.J. Richards ,
A. Kagan  and
X.M. Gao
T.J. Richards
Affiliation:
School of Agribusiness and Resource Management, Arizona State University
A. Kagan
Affiliation:
School of Agribusiness and Resource Management, Arizona State University
X.M. Gao
Affiliation:
School of Agribusiness and Resource Management, Arizona State University
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Abstract

Despite the rapid rise in complex carbohydrate consumption over the last twenty-five years, fresh potato consumption has fallen by over 50%. Fresh potato growers and retailers alike need to know whether these changes reflect consumer responses to changing relative prices or incomes, or whether they are due to changes in consumer tastes. This paper uses a linear approximation almost ideal demand system (LA/AIDS) to investigate the effect of relative prices, expenditures, and a set of socioeconomic variables on complex carbohydrate demand. Estimation results show that the socioeconomic variables explain some of the changes in demand, but a significant amount remains as evidence of a change in consumer tastes.

Type
Articles
Information
Agricultural and Resource Economics Review , Volume 26 , Issue 1 , April 1997 , pp. 52 - 66
Copyright
Copyright © 1997 Northeastern Agricultural and Resource Economics Association 

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