ISHS Acta Horticulturae 135: VII Symposium on Horticultural Economics, XXI IHC
AN ECONOMETRIC ANALYSIS OF WHOLESALE MARKET DEMAND FOR FRESH TOMATOES USING DAILY DATA |
| Author: | G. Balestrieri |
| Abstract:
Estimates are presented of demand relationships for fresh tomatoes. Estimates have been performed using daily data of prices and quantities of fresh tomatoes exchanged from march to september of the years 1976 to 1979 in the terminal wholesale market of Pisa. The analysis skows that the price elasticity of terminal wholesale market demand is smaller for the product marketed in spring than for the product marketed in summer. In addition, results obtained indicate that spring wholesale demand elasticity has been decreasing during the sample period, while there is no clear evidence for summer wholesale demand elasticity to have followed a similar pattern. A general model of price formation for horticultural products at the farm level as well as at the wholesale and retail levels is given. According to the model given wholesale demand elasticities are interpreted as derived consumer demand elasticities. The findings are explained on the basis of the price formation mechanism holding for the retail sector. In particular, it is suggested that the observed reduction of wholesale demand elasticities during the sample period might have been caused by retail margins growing faster than wholesale prices because of inflationary expectations of retailers. Average seasonal consumer demand elasticities with respect to retail price are eventually computed from estimated wholesale demand elasticities and observed retail-wholesale price ratios. Both spring and summer consumer demand elasticities appear to have been slightly increasing during the sample period, while spring consumer demand elasticities remain smaller than summer consumer demand elasticities. Results are briefly discussed with reference to farmers supply. | |
Download Adobe Acrobat Reader (free software to read PDF files) | |
