The impact of technical change, scale effects, and forward ordering on u.S. fiber demands

Shui Shangnan, John C. Beghin, Michael Wohlgenant

Research output: Contribution to journalArticlepeer-review

15 Scopus citations

Abstract

This paper estimates a complete system of input cost shares in U.S. textile production, using time-series data and a linear logit specification incorporating the impact of technical change and scale effects on derived demands for natural and manmade fibers. The specification accounts for forward ordering dynamics in the textile industry. Technical change has decreased natural fiber use in U.S. textile mills in favor of manmade fibers. Decomposition analysis of economic factors affecting long-run use of natural versus manmade fiber indicates that nonprice factors account for 70% of the decline in long-run natural fiber use.

Original languageEnglish (US)
Pages (from-to)632-641
Number of pages10
JournalAmerican Journal of Agricultural Economics
Volume75
Issue number3
DOIs
StatePublished - Aug 1993
Externally publishedYes

Keywords

  • Fiber demand
  • Linear logit
  • Scale effect
  • Technical change

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics

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