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Estimates of the elasticity of the supply of bananas in Puerto Rico



Estimates of the elasticity of the supply of bananas in Puerto Rico



Journal of Agriculture of the University of Puerto Rico 89(3/4): 181-192



In this study the elasticity of the area of banana plantations related to deflated lag prices was estimated. The result of the elasticity was 0.01. The expectation coefficient beta e was 0.36. The expectation coefficient and the estimated price elasticity were estimated (expected price; P*). The expectation coefficient obtained was 0.36, all of which suggests that farmers consider past prices when they are planning their plantings. In this particular situation a 6-year lag was considered.

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