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© 1981 Oxford University Press and the Foundation for the European Review of Agricultural Economics

other

An application of the Market Share Approach to the demand for soyabean and rapeseed oil*

KARL D. MEILKE, Professor and G.R. GRIFFITH

School of Agricultural Economics and Extension Education, University of Guelph Guelph, Ontario, Canada N1G, 2W1
New South Wales Department of Agriculture Australia

Summary

Estimates of the demand for total edible vegetable oil and soyabean oil in the U.S., Canada, Japan and the European Community, and rapeseed oil in Canada, Japan and the European Community are presented. In order to overcome specification problems, which have often plagued efforts to estimate the demand for individual vegetable oils, a market share approach is proposed. The market share equations when combined with estimates of the demand for total edible vegetable oil imply that the demand for rapeseed oil is more elastic than the demand for soyabean oil in all regions and that the European Community has by far the most elastic demand for both rapeseed and soyabean oil.


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