Showing papers by "Andrew Muhammad published in 2004"

U.s. demand for imported lamb by country: a two-stage differential production approach

Abstract: Summary In view of increasing lamb and mutton imports and declining domestic supplies, the goal of this paper was to derive empirical estimates of conditional and unconditional elasticities of derived demand for imported lamb and mutton differentiated by source country of production (Australia and New Zealand) and type (frozen and chilled) with respect to frozen and chilled prices in Australia and New Zealand, U.S. wholesale lamb price, U.S. wages in the wholesale trade sector, and the total amount of frozen and chilled lamb imported. The impact of the removal of the TRQ on U.S. lamb imports was assessed as well. We used the differential approach to the theory of the firm where firms maximize profits in two stages. In the first stage, firms determine the profit maximizing level of output to produce and in the second stage firms minimize the cost of producing this profit maximizing level. We assume that firms import lamb from all possible sources and sell the output to other firms, be it wholesalers or retailers. The results show that as the U.S. wholesale price of output supply increases, imported lamb increases. Also, the results suggest that the TRQ had a significant and adverse impact on total imports and therefore could have been more effective for U.S. if exchange rates for Australia and