Changing Dairy Consumption in an Emerging Economy: An Application of a Multivariate Two-part Model

Shengfei Fu and Wojciech J. Florkowski

No 235625, 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts from Agricultural and Applied Economics Association

Abstract: This article examines the choices of Polish households in their decision to consume and the amount spent on four dairy products, i.e., whole milk, skim milk, butter and yogurt. A random utility framework leads to the specification of a system of four participation and four level (expenditure) equations. With the strong substitution effect between the consumption of whole milk and low-fat milk and possible correlation among the purchase decisions of other dairy products, the specification allows for correlation between the consumption decisions among different dairy products. Therefore, the selection of a system approach leads to constructing a multivariate two-part model. A pooled cross-sectional sample used in model estimation has 77,043 observations with non-missing values for the period from 2005 to 2008.

Keywords: Consumer/Household Economics; Food Consumption/Nutrition/Food Safety (search for similar items in EconPapers)
Pages: 21
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/235625/files/F ... Emerging_Economy.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea16:235625

DOI: 10.22004/ag.econ.235625

Access Statistics for this paper

More papers in 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().