CHARACTERISTIC SUPPLIES AND DEMANDS IN A HEDONIC FRAMEWORK - UNITED-STATES MARKET FOR COTTON FIBER ATTRIBUTES

Hedonic price analysis has frequently been used to determine agricultural commodity characteristics' values. While hedonic price theory consists of a two-stage process, second-stage commodity characteristics' equations have not been successfully estimated until now. The estimated system consisted of 11 first-stage equations to determine cotton characteristics' values. The second stage consisted of 24 characteristic demand and 20 characteristic supply equations to model the underlying characteristic market structure. Cotton characteristic values were shown to vary across regions and over time as characteristic supplies and demands varied.