Feenstra-UPI 지수를 이용한 과채류 신품종 도입의 소비자 후생효과 분석

Valuation of New Fruits and Vegetables using the Feenstra-UPI Indices

This study estimated the consumer welfare effects of introducing new varieties of fruits and vegetables to Korea markets. The Feenstra-UPI indices of apple, peach, and strawberry were estimated for the period between 2005 and 2015. The elasticities of substitution between varieties were estimated with a GMM method. It was shown that the variety adjustment terms in the indices are substantial. Due to the great market success of a domestically developed variety, the term was the largest for strawberry. Our study compared the price change effects of the conventional Feenstra index with that of UPI suggested by Redding and Weinstein (2016). It was found that price change effects are smaller in the latter index owing to the shifts in preference toward varieties with higher rates of price increase.