A Generalized Dynamic Inverse AIDS Model for Fresh Fruits and Vegetables: An Application to the U.S. Bell Pepper Industry

• Published in: IDEAS Working Paper Series from RePEc
• Main Authors: Peguero, Felipe, Kennedy, P Lynn, Zapata, Hector O
• Format: Paper
• Language: English
• Published: St. Louis Federal Reserve Bank of St. Louis 01.01.2018
• Subjects: Consumption; Fruits; Habits; Pasta; United States > US

A novel approach is developed to evaluate the effect of changes in consumption habits on the price flexibilities of fresh fruits and vegetables. Thus, the traditional Inverse AIDS model is augmented with own- and cross-consumption habits. Results of the dynamic AIDS models suggest that habit formati...