STRUCTURAL-CHANGE IN FACTOR DEMAND RELATIONSHIPS IN THE UNITED-STATESFOOD AND KINDRED PRODUCTS INDUSTRY

This analysis utilizes multivariate gradual switching regression techn iques and Bayesian inferential procedures to evaluate structural chang e in factor demand relationships in the food manufacturing industry. F ood materials are included as an input into the food manufacturing ind ustry. The results confirm a significant gradual structural change tha t initiated in 1980. Price elasticities indicate that the demands for raw food materials and energy have become more elastic while the deman d for labor has become less elastic. Morishima elasticities of substit ution indicate that nearly all factors are substitutes and that the de gree of substitutability has significantly increased in recent years.