Estimating short-run (SR) and long-run (LR) demand elasticities of phosphate

Many empirical exercises estimating demand functions are concerned with dynamic effects of price and income changes over time. Researchers typically interested in getting estimates both short-run (SR) long-run (LR) elasticities, along their standard errors. This study aimed to contribute estimations elasticities world phosphate fertilisers. It answered the research question “How fertilisers is affected by its own changes, cross other variables?”. Short long run calculated using an economic model this paper. The findings indicate that global inelastic short run. In addition, run, elasticity, yield elasticity inelastic. Our modeling predicts consumption for will increase from 45.35 million tons 2018 around 59.16 2028; which implies average annual growth rate 2.7% P 2 O 5 be required every year consumers additional production capacity may needed order meet future demand. results suggest prices forecast increase, as continues rise no new facilities built.