A DOUBLE-HURDLE MODEL OF FOOD DEMAND WITH ENDOGENOUS UNIT VALUES

Diansheng Dong () and Brian W. Gould

No 21635, 1999 Annual meeting, August 8-11, Nashville, TN from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This study develops a unique double-hurdle model of demand for composite food commodities which endogenizes unit values. The model structure allows us to account for the inability to observe such values for non-purchasing households and simultaneously adjusts for quality demand effects reflected in these unit values. Application to Mexican household food expenditure data shows the importance of controlling for the quality of composite goods. We find that poultry and pork expenditures depend on both quantity demanded and quality desired.

Keywords: Consumer/Household Economics; Demand and Price Analysis (search for similar items in EconPapers)
Pages: 14
Date: 1999
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea99:21635

DOI: 10.22004/ag.econ.21635

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