Structural Changes in U.S. Cotton Supply Relationships

This paper is part of a larger project in involving spatial equilibrium modeling of U.S. cotton supply/demand flows. The U.S. is the third-largest producer of cotton in the world and, in recent years, has produced about 20 percent of the world's annual supply.   About one-third of U. S. production is marketed to domestic mills for processing, while the remaining two-thirds are shipped to international markets that are located throughout the world, but primarily in Asia.  This paper includes graphical and numerical results from (1)  econometric estimates of regional supply and demand functions of U.S. cotton,  (2) test results for structural changes in the U.S. cotton supply/demand relationships, and (3) comparisons to more commonly used, e.g., by FAPRI, aggregate supply/demand estimates.