Abstract |
This paper addresses pricing and production options for Ethiopia’s coffee exports. We develop a model of constrained optimization based on the current International Coffee Agreement structure, own-price import demand elasticities, and derive price discriminating functions to optimize export revenues. While there are some non-quota markets such as Saudi Arabia and South Korea, we find greater revenue opportunities through a re-allocation of exports away from the U.S. market to West Germany, Japan, and Italy.
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