| The objective of this dissertation was to determine impacts of both sugar and ethanol related policies on the high fructose corn syrup (HFCS) market. HFCS was developed in the early 1980's as a substitute for sugar and experienced rapid growth as industrial users of sugar adopted the new, less expensive product.;The own-price elasticity of demand was estimated to be ;Changes in producers and consumers surplus as a result of removal of the U.S. Sugar Program and changes to the ethanol market were calculated. Results indicate that a decrease in sugar price of 7% caused HFCS price and quantity to decrease by 2.8% and 0.9%. Consumer surplus decreased ;A 10% increase in the price of ethanol decreased HFCS price 2.3% and increased production 2.0%. Producers surplus declined ;Structural and reduced-form equations for the HFCS market were developed in order to determine the relationship between HFCS, sugar, and ethanol. The reduced-form equations were estimated using quarterly data covering 1984 through 1994. Variables significant in determining quantity of HFCS demanded included prices of HFCS and sugar, percent of the population between ages 25 and 39, second and third quarters, and population. Variables significant in determining quantity of HFCS supplied included price of HFCS, lag quantity of HFCS, and prices of labor and ethanol. |
