Empirical Economics

, Volume 19, Issue 3, pp 419–428 | Cite as

Elasticity estimates of farmed salmon demand in Spain and Italy

  • Trond Bjørndal
  • Kjell G. Salvanes
  • Daniel V. Gordon


In this paper, estimates of the elasticities that characterize the structure of demand for farmed salmon in Spain and Italy are reported. The demand models are specified using a Box-Cox transformation of the variables and a Hausman test is used to determine price endogeneity in the demand equations. The results show short-run unitary own-price elasticity of demand for farmed salmon in both markets, but long run estimates show significant elastic price response. Short run substitution of salmon for other fish species is not observed and, for both Spain and Italy, farmed salmon is characterized as a luxury good. Interestingly, we show that our a priori expectations about own-price elasticities being lower in smaller market areas is confirmed. Finally, the results obtained are compared to other recent results reported in the salmon demand literature.

JEL Classification System-Numbers

C22 D12 Q21 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Bjørndal T (1990) The economics of salmon aquaculture. Oxford: Blackwell Scientific PublishersGoogle Scholar
  2. Bjørndal T, Schwindt R (1988) An international analysis of the industrial economics of salmon agriculture. Discussion Paper No. 3/88, Centre for Fisheries Economics, Norwegian School of Economics and Business Administration, BergenGoogle Scholar
  3. Bjørndal T, Salvanes KG, Andreassen JH (1992) The demand for salmon in France: The effects of marketing and structural change. Applied Economics 24:1027–1034Google Scholar
  4. Bjørndal T, Gordon DV, Salvanes KG (1992) The markets for salmon in Spain and Italy. Marine Policy 16:338–344Google Scholar
  5. DeVoretz DJ, Salvanes KG (1990) Demand for farmed salmon: Market structure and stability. Working Paper No. 17/90, Department of Economics, University of BergenGoogle Scholar
  6. DeVoretz DJ, Salvanes KG (1993) Market structure for farmed salmon. American Journal of Agricultural Economics (forthcoming)Google Scholar
  7. Hausman FA. Specification Tests in Econometrics. Econometrica 46: 125–171Google Scholar
  8. Herrmann M, Lin BH (1988) The demand and supply of Norwegian atlantic salmon in the United States and the European Community. Canadian Journal of Agricultural Economics 36:459–471Google Scholar
  9. Houthakker HS, Taylor LD (1970) Consumer demand in the United States: Analysis and projections. Cambridge, Massachusetts: Harvard University PressGoogle Scholar
  10. International Monetary Fund (1985–1990) International financial statistics. Washington, DCGoogle Scholar
  11. Istituto Nazionale di Statistica (1985–1990) Statistics della caccia e della pesca. RomeGoogle Scholar
  12. Judge GG, Hill RC, Griffiths WE, Lütkepohl H, Lee TC (1988) Introduction to the theory and practice of econometrics. 2nd edition. New York: John Wiley & SonsGoogle Scholar
  13. Lin BH, Herrmann M (1987) An economic analysis of salmon markets. Paper presented at a symposium on Markets for Seafood and Aquacultural Products, South CarolinaGoogle Scholar
  14. Norwegian Seafood Export Council. Information letters from the offices in Madrid and Milano. 1990–1991Google Scholar
  15. Organization for Economic Cooperation and Development (OECD) (1985–1990). Main Economic Indicators. ParisGoogle Scholar
  16. Pindyck RS, Rubinfeld DL (1991) Econometric models and economic forecasts. 3rd edition, New York: McGraw-Hill, IncGoogle Scholar
  17. Shaw S, Gabbott M. An International Study of the Marketing og Farmed Salmon. Report No. 5/1990, Foundation for Research in Economics and Business Administration, BergenGoogle Scholar

Copyright information

© Physica-Verlag 1994

Authors and Affiliations

  • Trond Bjørndal
    • 1
  • Kjell G. Salvanes
    • 1
  • Daniel V. Gordon
    • 2
    • 3
  1. 1.Centre for Fisheries EconomicsNorwegian School of Economics and Business AdministrationBergenNorway
  2. 2.Centre for Fisheries EconomicsNorwegian School of Economics and Business AdministrationNorway
  3. 3.Department of EconomicsUniversity of CalgaryCalgaryCanada

Personalised recommendations