A Regional Econometric Model of U.S. Apple Supply and Demand
Estimation of consumer and producer surplus changes that are caused by technology shifts requires knowledge of demand and supply elasticities in the markets in questions. Because apple production systems are very heterogeneous across the United States, growers' abilities to respond to technology changes and market forces differ widely. To capture the dispersion of responses, estimates of elasticities are needed for the different grower groups. To this end, a model of U.S. apple production was estimated at a regional level.