Estimating US Soybean Exports: A Simultaneous Supply/Demand Approach

Abstract

A simultaneous equation model is used to estimate export demand and supply functions for US soybeans. Price, income, exchange rate and other effects on exports to four world regions are estimated. Inclusion of export supply relationships have very significant implications for estimated price‐, income‐, and exchange‐rate elasticities of export demand. Results fail to support the usual empirical assumption of infinite supply price elasticity for soybeans.