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Changes in Transportation Costs and Interregional Competition in the U.S. Apple Industry

Published online by Cambridge University Press:  10 May 2017

James W. Dunn  and
Lynn A. Garafola
James W. Dunn
Affiliation:
Agricultural Economics, The Pennsylvania State University, University Park, Pennsylvania
Lynn A. Garafola
Affiliation:
Agricultural Economics, The Pennsylvania State University, University Park, Pennsylvania
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Abstract

An interregional competition model of the U.S. apple industry is constructed. This model includes the consumer products of fresh apples, applesauce and apple juice. The validation of the model showed that it did a good job of estimating consumer's quantity demanded and prices and a reasonable job of estimating utilization. This model was used to study the effects of transportation cost changes on the industry in the short- and intermediate run. The total production and consumption levels changed by moderate amounts with changing transport costs while the utilization of a region's crop was quite sensitive to such changes.

Type
Research Article
Information
Northeastern Journal of Agricultural and Resource Economics , Volume 15 , Issue 1 , April 1986 , pp. 37 - 44
Copyright
Copyright © 1986 Northeastern Agricultural and Resource Economics Association 

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Footnotes

Paper No. 7327. The authors appreciate the assistance of Thomas Brewer.

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