The system-wide approach is used to develop an import allocation model based on blockwise dependence. The import demand system is parameterized using the absolute version of the Rotterdam model. Two empirical examples are given to illustrate the approach.

The study examined the relationship between import price and retail price of grapefruit in Japan. Estimated retail-import price relationship indicate asymmetry responses distributed over time. Import price changes are not fully transmitted to the retail level, with import price increases being...