An econometric estimation of Japanese shrimp supply and demand during the 1990s

Abstract

A simultaneous‐equation model of the supply and demand of shrimp in Japan is constructed, and sensitivity analyses are conducted to measure the effects of changing exchange rates and the stock holdings of shrimp. Using monthly statistics from January 1990 to December 1997, the Japanese own‐price elasticity of supply is found to be inelastic and has a less important effect than the beginning stocks factor. The Japanese demand for shrimp is also found to be price‐and income‐inelastic. The beginning of stock holdings is more sensitive to Japanese shrimp demand than the import price and income. The result of seasonality analyses shows that Japanese shrimp demand also depends on cultural factors.