Hostname: page-component-cd9895bd7-gxg78 Total loading time: 0 Render date: 2024-12-23T09:35:23.417Z Has data issue: false hasContentIssue false
  • English
  • Français

Estimation of Demand for Wheat by Classes for the United States and the European Union

Published online by Cambridge University Press:  15 September 2016

Samarendu Mohanty  and
E. Wesley F. Peterson
Samarendu Mohanty
Affiliation:
Center for Agricultural and Rural Development at Iowa State University
E. Wesley F. Peterson
Affiliation:
Department of Agricultural Economics at the University of Nebraska-Lincoln
Get access Rights & Permissions [Opens in a new window]

Abstract

This study estimates demand for wheat differentiated by classes using a dynamic AIDS model for the United States and the European Union (EU). The results suggest that imported wheat is more price responsive than domestic wheat in the U.S. market but not in the EU market. This may suggest that the Canadian policy that reduces prices of Canadian wheat in the U.S. market or U.S. export subsidies that raise prices of U.S. wheat could be expected to give rise to substantial substitution of Canadian for U.S. wheat. It is also found that in the EU, complementary relationships exist between spring and other wheat groups. This complementary relationship between the lower and higher quality wheat in the EU is not surprising because EU millers blend cheaper wheat such as EU common wheat and U.S. other wheat with high protein (spring) to obtain the preferred characteristics.

Type
Articles
Information
Agricultural and Resource Economics Review , Volume 28 , Issue 2 , October 1999 , pp. 158 - 168
Copyright
Copyright © 1999 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Agra Europe(London) Ltd. Agra Europe, Various Issues.Google Scholar
Agriculture Canada. 1987. Analysis of Strategic Mixes for Canadian Wheat Exports. Guelph, Ontario: Agriculture Canada.Google Scholar
Alaouze, C.M., Watson, A.S., and Sturgess, N.H. 1978. “Oligopoly Pricing in the World Wheat Market.” American Journal of Agricultural Economics 60: 173–85.CrossRefGoogle Scholar
Alston, J.M., Carter, C.A., Green, R., and Pick, D. 1990. “Whither Armington Trade Models.” American Journal of Agricultural Economics 72: 455–68.Google Scholar
Alston, J.M., Gray, R., and Sumner, D.A. 1994. “The Wheat War of 1994.” Canadian Journal of Agricultural Economics 42: 231–51.CrossRefGoogle Scholar
Anderson, G.J., and Blundell, G.R. 1982. “Estimation and Hypothesis Testing in Dynamic Singular Equation System.” Econometrica 50: 1559–71.Google Scholar
Anderson, G.J., and Blundell, G.R. 1983. “Testing Restrictions in a Flexible Dynamic Demand System: An Application to Consumers’ Expenditure in Canada.” Review of Economic Studies 50: 397–410.CrossRefGoogle Scholar
Armington, P.S. 1969. “A Theory of Demand for Products Distinguished by Place of Production.” IMF Staff Paper 16: 159–78.Google Scholar
Chai, J. 1972. “The U.S. Food Demand for Wheat by Classes.” Staff Pap. No. P72-14, Department of Agricultural and Applied Economics, University of Minnesota.Google Scholar
Chang, J. 1981. “Analysis of Import Demand for Hard Red Spring and Hard Red Winter Wheat in the International Market.: Unpublished M.S. Thesis, North Dakota State University.Google Scholar
Deaton, A., and Muellbauer, J. 1980. “An Almost Ideal Demand System.” American Economic Review 70: 312–26.Google Scholar
European Commission. The Agricultural Situation in the European Union. Various Issues.Google Scholar
Gallagher, P., Lancaster, M., Bredahl, M., and Ryan, T.J. 1986. “The U.S. Wheat Economy in an International Setting: An Econometric Investigation.” ESS/USDA Technical Bulletin No. 1644, U.S. Department of Agriculture, Washington DC.Google Scholar
Grennes, T., Johnson, P.R., and Thursby, M. 1977. The Economics of World Grain Trade. New York: Praeger Publishers.Google Scholar
Harwood, L.J., and Bailey, K.W. 1990. “The World Wheat Market—Government Intervention and Multilateral Policy Reforms.” Staff Report AGEX 9007. Commodity Economics Division, Economic Research Services, USDA.Google Scholar
Hendry, D.F., Pagan, A.R., and Sargan, J.D. “Dynamic Specification.” Chapter 18 in Handbook of Econometrics, Vol II (Griliches, Z. and Intriligator, M. eds). North Holland.Google Scholar
Hennings, C.J., and Martin, L.J. 1989. “An Economic Evaluation of Expanded Canadian 3-M Wheat Exports.” Canadian Journal of Agricultural Economics 37: 445–65.Google Scholar
International Wheat Council. World Wheat Statistics. Selected Issues.Google Scholar
International Wheat Council. 1991-1995. World Grain Statistics.Google Scholar
Kesavan, T., Hassan, Z.A., Hensen, H.H., and Johnson, S.R. 1993. “Dynamic and Long-Run Structure in U.S. Meat Demand.” Canadian Journal of Agricultural Economics 41: 139–53.CrossRefGoogle Scholar
Kmenta, J. 1986. Element of Econometrics. Macmillan Publishing Company. New York. pp. 485–95.Google Scholar
Konandreas, P., Bushnell, P., and Green, R. 1978. “Estimation of Export Demand Functions for U.S. Wheat.” Western Journal of Agricultural Economics 3: 39–49.Google Scholar
Kraft, D.F., Furton, W.H., and Trychniewicz, E.W. 1996. “Performance Evaluation of the Canadian Wheat Board.” Winnipeg: Canadian Wheat Board (January).Google Scholar
Larue, B. 1991. “Is Wheat a Homogeneous Product?” Canadian Journal of Agricultural Economics 39: 103–117.CrossRefGoogle Scholar
Leuck, D. 1990. “The Effects of the Common Agricultural Policy on the European Community Wheat-Industry and Grain Trade.” Staff Report AGES 9023. Washington, D.C.: ERS/USDA.Google Scholar
McCalla, A.F. 1966. “A Duopoly Model of World Wheat Pricing.” American Journal of Agricultural Economics 48: 711–27.Google Scholar
Mohanty, S., Peterson, E.W.F., and Kruse, N.C. 1995. “Price Asymmetry in the International Wheat Market.” Canadian Journal of Agricultural Economics 43: 355–66.CrossRefGoogle Scholar
Organization for Economic Cooperation and Development. 1987. (OECD). National Policies and Agricultural Trade Paris.Google Scholar
Pick, D., Webb, A., Dusch, E., and Gudmunds, K. “Quantitative Assessment of U.S. Wheat Performance or Services and Quality Characteristics.” Canadian Journal of Agricultural Economics.Google Scholar
Pollak, R.A., and Wales, T.J. 1969. “The Estimation of the Linear Expenditure System.” Econometrica 27: 611–28.Google Scholar
Sumner, D.A., Alston, J.M., and Gray, R. 1994. “A Quantitative Analysis of the Effects of Wheat Imports on the U.S. Market for Wheat Including the Impact on Deficiency Payments.” Report Prepared for the Canadian Wheat Board.Google Scholar
United States Department of Agriculture. 1994. Response to Commission Questions Directed to the USDA. Presented before the International Trade Commission, Investigation No. 22-54 (Wheat, Wheat Flour, and Semolina).Google Scholar
United States Department of Agriculture. Wheat Situation and Outlook Report, Various Issues.Google Scholar
Wang, Y. 1962. “The Demand and Price Structure for Various Classes of Wheat.” Unpublished Ph.D. Dissertation, The Ohio State University.Google Scholar
Wickens, M.R., and Breusch, T.S. 1988. “Dynamic Specification, the Long Run, and the Estimation of Transformed Regression Models.” Economic Journals 98: 189–205.Google Scholar
Wilson, W.W. 1989. “Differentiation in Export Wheat Markets.” Western Journal of Agricultural Economics 14: 67–77.Google Scholar
Wilson, W.W. 1994. “Demand for Wheat Classes by Pacific Rim Countries.” Journal of Agricultural and Resource Economics 19: 197–209.Google Scholar
Wilson, W.W., Koo, W.W., and Carter, C.A. 1990. “Importer Loyalty in the International Wheat Market.” Journal of Agricultural Economics 41(1): 94–102.CrossRefGoogle Scholar