An Empirical Analysis of Household Demand for Organic and Conventional Flour in the United States: Evidence from the 2014 Nielsen Homescan Data

Rafael Bakhtavoryan, Armine Poghosyan, Jose A. Lopez and Asli Ogunc

Journal of Agribusiness, 2019, vol. 37, issue 2

Abstract: Using the 2014 Nielsen Homescan panel data, the Heckman two-stage sample selection model estimates the likelihood of purchasing organic and conventional flour as well as the quantity purchased of each. A number of demographic variables are found to be statistically significant impacting the likelihood of purchasing organic and conventional flour. Own-price elasticities of demand for organic and conventional flour indicate that the demand for both flour types is inelastic. Cross-price elasticities of demand suggest an asymmetric pattern between organic and conventional flour demand. Finally, organic and conventional flour are found to be inferior goods.

Keywords: Agribusiness; Demand and Price Analysis (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:jloagb:302412

DOI: 10.22004/ag.econ.302412

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