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Addressing Pre-Commitment Bias with a Generalized EASI Model: An Application to Food Demand in Russia

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  • Hovhannisyan, Vardges
  • Shanoyan, Aleksan

Abstract

The Exact Affine Stone Index (EASI) demand model offers distinct advantages over its predecessors. However, it does not account for pre-committed demand. This can bias elasticity estimates when such pre-commitments are present. We derive a generalized EASI model that allows for pre-committed demand. We illustrate the advantage of this model in an empirical analysis of food demand in Russia using provincial-level panel data. The results provide strong empirical evidence for the presence of pre-committed demand for key food commodities. The findings extend the literature on food demand in Russia by estimating elasticities that account for pre-commitments and unobserved regional heterogeneity.

Suggested Citation

  • Hovhannisyan, Vardges & Shanoyan, Aleksan, 2019. "Addressing Pre-Commitment Bias with a Generalized EASI Model: An Application to Food Demand in Russia," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 44(1), January.
    • Handle: RePEc:ags:jlaare:281314
    DOI: 10.22004/ag.econ.281314
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    Citations

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    Cited by:

    1. Hovhannisyan, Vardges & Bastian, Christopher T. & Devadoss, Stephen, 2020. "An Empirical Analysis of Tobacco Addiction," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304425, Agricultural and Applied Economics Association.
    2. Rahman, Kazi Tamim & Shanoyan, Aleksan & Hovhannisyan, Vardges, 2021. "Food Commodity Price Hikes, Public Policy, and Consumer Welfare: Lessons from Bangladesh," 2021 Annual Meeting, August 1-3, Austin, Texas 314076, Agricultural and Applied Economics Association.
    3. Rahman, Kazi Tamim & Shanoyan, Aleksan & Hovhannisyan, Vardges, 2020. "Pre-Committed Demand for Food in Bangladesh: Implications for Agri-Food Industry Stakeholders," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304644, Agricultural and Applied Economics Association.
    4. Vardges Hovhannisyan & Christopher T. Bastian, 2023. "New insights into the structure of consumer preferences for natural and artificial sweeteners," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(5), pages 1491-1515, October.
    5. Hovhannisyan, Vardges & Bastian, Christopher T., 2022. "Consumption of Low-Intensity and High-Intensity Sweeteners in the United States: Structure, Drivers, and Policy Implications," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322508, Agricultural and Applied Economics Association.

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