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Changes in the Elasticity of Demand for Fresh Choice Beef, 1950–1978

Published online by Cambridge University Press:  10 May 2017

Albert W. Nicholls  and
John P. Kuehn
Albert W. Nicholls
Affiliation:
West Virginia University
John P. Kuehn
Affiliation:
West Virginia University
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Abstract

This study used least squares regression techniques to estimate the demand for fresh choice beef in the U.S., 1950–1978. From the demand equation, estimates of price, income and cross elasticity of demand were derived. An objective was to determine if elasticity of demand has been decreasing. Problems with pooling of data, serial correlation and multicollinearity were dealt with. Estimated price elasticity of demand was found to be .62. When this figure was compared to results of other studies (with the consideration that different estimating techniques and time periods were used) it was judged that elasticity of demand for fresh choice beef in the U.S. probably had declined between 1950 and 1978.

Type
Research Article
Information
Journal of the Northeastern Agricultural Economics Council , Volume 9 , Issue 1 , April 1980 , pp. 63 - 65
Copyright
Copyright © Northeastern Agricultural and Resource Economics Association 

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Footnotes

Special and grateful thanks to Dr. Tom S. Witt, Associate Professor of Economics, West Virginia University for his reading of the first draft and for providing valuable insight into the workings of econometrics. Appreciation is also expressed to Dr. James E. Harner, Jr., Associate Professor of Statistics and Computer Science, West Virginia University, for assistance in setting up and interpreting the computer analysis.

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