Sn. Shui et al., THE IMPACT OF TECHNICAL CHANGE, SCALE EFFECTS, AND FORWARD ORDERING ON UNITED-STATES FIBER DEMANDS, American journal of agricultural economics, 75(3), 1993, pp. 632-641
This paper estimates a complete system of input cost shares in U.S. te
xtile production, using time-series data and a linear logit specificat
ion incorporating the impact of technical change and scale effects on
derived demands for natural and manmade fibers. The specification acco
unts for forward ordering dynamics in the textile industry. Technical
change has decreased natural fiber use in U.S. textile mills in favor
of manmade fibers. Decomposition analysis of economic factors affectin
g long-run use of natural versus manmade fiber indicates that nonprice
factors account for 70% of the decline in long-run natural fiber use.