Alfalfa seed demand analysis using panel data from seven western states

• Published in: Agribusiness (New York, N.Y.) Vol. 14; no. 2; pp. 139 - 146
• Main Authors: Myer, G.L. (University of Nevada.), Bhattacharyya, A, Liu, J
• Format: Journal Article
• Language: English
• Published: New York Wiley Subscription Services, Inc., A Wiley Company 01.03.1998; John Wiley & Sons, Ltd; Wiley Periodicals Inc
• Series: Agribusiness
• Subjects: Agribusiness; Agricultural commodities; Agriculture; Alfalfa; CALIFORNIA; COST ANALYSIS; DEMAND; Demand analysis; DEMAND FUNCTIONS; Economics; EQUATIONS; Farm machinery; Genetics; IDAHO; LUCERNE; MATHEMATICS; MEDICAGO SATIVA; MONTANA; NEVADA; OREGON; PRICE ELASTICITIES; Price elasticity; Protozoa; SEED INDUSTRY; SEED PRODUCTION; Seeds; Statistical analysis; Studies; TECHNICAL PROGRESS; Technological change; TECHNOLOGICAL CHANGES; UTAH; Variables; WASHINGTON; Weeds; United States > US; West
• ISSN: 0742-4477; 1520-6297
• DOI: 10.1002/(SICI)1520-6297(199803/04)14:2<139::AID-AGR6>3.0.CO;2-3

Price responsiveness of alfalfa seed demand is estimated using a panel data set of seven Western states, covering the period 1950 to 1992. The demand function is derived from a generalized Leontief variable cost function with a time trend. Tests are performed and corrections are made for heteroskedasticity and serial autocorrelation. Estimated own-price elasticities of demand are highly inelastic, but over time become price sensitive. The estimated cross-price elasticities indicate that machinery price has the highest impact on alfalfa seed demand. An estimate of technological change indicates that the industry has been taking advantage of the improved seed genetics