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An Examination of Inverse Demand Models: An Application to the U. S. Crawfish Industry

Published online by Cambridge University Press:  15 September 2016

Youngjae Lee  and
P. Lynn Kennedy
Youngjae Lee
Affiliation:
Crescent City Tigers Alumni Professor at Louisiana State University Agricultural Center in Baton Rouge, Louisiana
P. Lynn Kennedy
Affiliation:
Crescent City Tigers Alumni Professor at Louisiana State University Agricultural Center in Baton Rouge, Louisiana
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Abstract

This study analyzes quantity impacts of imported crawfish tailmeat on Louisiana crawfish tailmeat prices, and demonstrates the statistical validity and proper interpretation of cross substitution within inverse demand systems. Among five inverse demand systems, the Differential Inverse National Bureau of Research (DINBR) model shows no violation of econometric assumptions for the data analyzed. By using Allais coefficients proposed by Barten and Bettendorf (1989), we show substitutability among the five fish species.

Keywords

inverse demand systemsstatistical validityAllais coefficients
Type
Contributed Papers
Information
Agricultural and Resource Economics Review , Volume 37 , Issue 2 , October 2008 , pp. 243 - 256
Copyright
Copyright © 2008 Northeastern Agricultural and Resource Economics Association 

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