Substitutability for Farm Commodities: The Demand for U.S. Tobacco in Cigarette Manufacturing
估计了美国卷烟行业对烟草的需求，发现进口烟草和其他投入品可替代美国烟草，并分析了降低价格支持的影响。
Abstract A generalized leontief cost function and system of factor demand functions for the domestic cigarette industry is estimated. We strongly rejected fixed proportions. Both imported tobacco and other inputs are substitutes for U.S. tobacco. The estimated (output constant) price elasticities are combined with the output effect (calculated from cost shares and time‐series estimates of the cigarette demand elasticity) and an export demand elasticity (from previous studies) to consider the effects of reducing the U.S. price support. Competition from foreign tobacco implies that a U.S. price decline would increase significantly the quantity of U.S. tobacco demanded.