ESTIMATING CROSS ELASTICITIES OF DEMAND FOR BEEF

Abstract

This paper examines the extent to which observed changes in per capita beef consumption can be accounted for by changes in relative prices and per capita real income. Particular attention was given to specifying the functional form by focusing on the nature of demand shifts over time. These considerations led to selection of the Fourier flexible form with a Fourier series expansion in relative meat prices. The results support the hypothesis that recent shifts in demand for beef can be attributed to changes in relative prices of competing meats, especially poultry.Demand and Price Analysis, Livestock Production/Industries,