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This study proposes a generalized demand system accommodating structural changes endogenously and examines how increasing imports affect blueberry prices and shipment values in the US market. Specifically, we integrate a smooth transformation function into the nested synthetic inverse demand system model (SIDS). We show that the proposed approach performs better than the standard SIDS in the context...
Using data collected from a pork firm survey, we develop a modeling framework and use the conjectural variation method to examine the effect of market power on the food safety of the pork industry in China. Probit models with a two‐step Heckman selection procedure are applied to identify the determinants of the likelihood and degree of food safety violations. Market power is found to reduce the likelihood...
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