Discrete/Continuous Consumer Demand Choices: An Application to the U.S. Domestic and Imported White Wine Markets

Greg Pompelli and Dale Heien

European Review of Agricultural Economics, 1991, vol. 18, issue 1, 117-30

Abstract: This study develops a model of domestic and imported white wine demand in the United States that incorporates demographic characteristics, usage rates, income, and price information. James J. Heckman's two-step method is used to model the discrete/continuous nature of consumer demand for white wine in the U.S. market. The own- and cross-price elasticities developed in this study are, with one exception, inelastic and generally agree with estimates derived by other authors. Income elasticities are also found to be inelastic and correspond to the results of most previous studies. Copyright 1991 by Oxford University Press.

Date: 1991
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