Estimating own and cross brand price elasticities, and price-cost margin ratios using store-level daily scanner data

Junko Kinoshita, Nobuhiro Suzuki, Tamotsu Kawamura, Yasuhito Watanabe and Harry Kaiser
Additional contact information
Junko Kinoshita: Policy Research Institute, Japanese Ministry of Agriculture, Forestry and Fisheries, 2-2-1 Nishigahara, Kita-ku, Tokyo 114-0024, Japan. E-mail: junkot@primaff.affrc.go.jp, Postal: Policy Research Institute, Japanese Ministry of Agriculture, Forestry and Fisheries, 2-2-1 Nishigahara, Kita-ku, Tokyo 114-0024, Japan. E-mail: junkot@primaff.affrc.go.jp
Nobuhiro Suzuki: Department of Agricultural Economics, Kyushu University, 6-10-1 Hakozaki, Higashi-ku, Fukuoka 812-8581. E-mail: suzukino@arg.kyushu-u.ac.jp, Postal: Department of Agricultural Economics, Kyushu University, 6-10-1 Hakozaki, Higashi-ku, Fukuoka 812-8581. E-mail: suzukino@arg.kyushu-u.ac.jp
Tamotsu Kawamura: Department of Environmental Science, Iwate University, 3-18-8 Ueda, Morioka, Iwate, 020-8550, Japan. E-mail: kawamura@iwate-u.ac.jp, Postal: Department of Environmental Science, Iwate University, 3-18-8 Ueda, Morioka, Iwate, 020-8550, Japan. E-mail: kawamura@iwate-u.ac.jp
Yasuhito Watanabe: Agricultural Cooperative Insurance Research Institute, 5-1,Kohjimachi 3 chome, Chiyoda-ku, Tokyo 102-0083, Japan. E-mail: ya-watanabe@ja-kyosai.or.jp, Postal: Agricultural Cooperative Insurance Research Institute, 5-1,Kohjimachi 3 chome, Chiyoda-ku, Tokyo 102-0083, Japan. E-mail: ya-watanabe@ja-kyosai.or.jp

Agribusiness, 2001, vol. 17, issue 4, 515-525

Abstract: This article addresses three issues related to Japanese dairy demand analysis. First, an econometric fluid milk demand model is estimated using store-level daily scanner data to determine whether the own-price elasticities are significantly different from previous estimates based on aggregate market-level data. This is important because of the current debate among Japanese dairy industry leaders concerning whether fluid milk is price inelastic or elastic. Own-price elasticity differences between fresh and reconstituted milk products are also examined. Second, milk product cross-price elasticities are estimated to measure the degree, if any, of substitutability between fresh milk and reconstituted milk products. Because most previous studies have relied upon aggregate market-level data, there are no previous estimates of cross-price elasticities for fresh milk and reconstituted milk products. Finally, price-cost margin ratios are estimated for each commodity using a method that does not require cost data, but rather relies on assumptions regarding the degree of competition to derive the price-cost margin ratio [Econlit alphanumeric subject codes: Q110, Q130]. © 2001 John Wiley & Sons, Inc.

Date: 2001
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Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:17:y:2001:i:4:p:515-525

DOI: 10.1002/agr.1032

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