Demand Characteristics for Imported Cod Products in Portugal Frozen, Salted & Dried and Salted

The demand function represents the fundamental building block in economics and provides important information for investment and policy purposes. The aim of this paper is to characterize and measure the demand structure for imported cod products to Portugal. A PCAIDS model is used to identify own- and cross-price elasticities of demand for frozen, salted & dried and salted cod products. The estimated elasticities of demand are then used in combination with a demand growth index to measure shifts in demand overtime impacting price of product.
Results suggest that over the period of study a strong positive shift in demand for frozen product doubling the price of the product relative to the initial period. But both imported salted & dried and salted product show overall negative shifts in demand decreasing price and may represent a structural shift towards frozen product.