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Factors Affecting U.S. Demand For Reduced-Fat Fluid Milk

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  • Gould, Brian W.
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    Abstract

    U.S. fluid milk consumption has changed dramatically since the early 1970s. Whole milk accounted for over 81% of commercial fluid milk disappearance in 1970. By 1993, this percentage was less than 39%. A three-equation fluid milk demand system is estimated for fluid milks that vary by fat content. The household panel data set used includes over 4,300 households that recorded fluid milk purchased for at-home consumption over a 12-month period. Given that many of these households did not consume one or more of the three milk types, the econometric model explicitly incorporates the censored nature of these commodity demands. Own- and cross-price and substitution estimated along with effects of household demographic characteristics.

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    File URL: http://purl.umn.edu/30998
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    Bibliographic Info

    Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

    Volume (Year): 21 (1996)
    Issue (Month): 01 (July)
    Pages:

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    Handle: RePEc:ags:jlaare:30998

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    Web page: http://waeaonline.org/
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    Related research

    Keywords: Demand and Price Analysis;

    References

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    1. Chiang, J. & Lee, L-F., 1990. "Discrete/Continuous Models of Consumer Demand with Binding Non-Negativity Constraints," Papers 261, Minnesota - Center for Economic Research.
    2. Gould, Brian W. & Lin, Huei Chin, 1994. "Nutrition Information And Household Dietary Fat Intake," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(02), December.
    3. Wales, T. J. & Woodland, A. D., 1983. "Estimation of consumer demand systems with binding non-negativity constraints," Journal of Econometrics, Elsevier, vol. 21(3), pages 263-285, April.
    4. Jorgenson, Dale W, 1990. "Aggregate Consumer Behavior and the Measurement of Social Welfare," Econometrica, Econometric Society, vol. 58(5), pages 1007-40, September.
    5. Neary, J.P & Roberts, K.W.S, 1978. "The Theory of Household Behaviour under Rationing," The Warwick Economics Research Paper Series (TWERPS) 132, University of Warwick, Department of Economics.
    6. Blundell, Richard & Meghir, Costas, 1987. "Bivariate alternatives to the Tobit model," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 179-200.
    7. Lee, Lung-Fei & Pitt, Mark M, 1986. "Microeconometric Demand Systems with Binding Nonnegativity Constraints: The Dual Approach," Econometrica, Econometric Society, vol. 54(5), pages 1237-42, September.
    8. X. M. Gao & Thomas Spreen, 1994. "A Microeconometric Analysis of the U.S. Meat Demand," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 42(3), pages 397-412, November.
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    Citations

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    Cited by:
    1. Davis, Christopher G. & Blayney, Donald P. & Cooper, Joseph C. & Yen, Steven T., 2009. "An Analysis of Demand Elasticities for Fluid Milk Products in the U.S," 2009 Conference, August 16-22, 2009, Beijing, China 51791, International Association of Agricultural Economists.
    2. Vassilopoulos, Achilleas & Klonaris, Stathis & Drichoutis, Andreas C. & Lazaridis, Panagiotis, 2012. "Modeling quality demand with data from Household Budget Surveys: An application to meat and fish products in Greece," Economic Modelling, Elsevier, vol. 29(6), pages 2744-2750.
    3. Cleary, Rebecca & Lopez, Rigoberto, 2007. "Is Wal-Mart Good for Competition? Evidence from Milk Prices," Research Reports 149207, University of Connecticut, Food Marketing Policy Center.
    4. Cihat Günden & Abdulbaki Bilgic & Bülent Miran & Bahri Karli, 2011. "A censored system of demand analysis to unpacked and prepackaged milk consumption in Turkey," Quality & Quantity: International Journal of Methodology, Springer, vol. 45(6), pages 1273-1290, October.
    5. Abdulfatah Sheikhbihi Adam & Sinne Smed, 2012. "The effects of different types of taxes on soft-drink consumption," IFRO Working Paper 2012/9, University of Copenhagen, Department of Food and Resource Economics, revised Nov 2012.
    6. Green, Geoffrey M. & Park, John L., 1998. "New Insights Into Supermarket Promotions Via Scanner Data Analysis: The Case Of Milk," Journal of Food Distribution Research, Food Distribution Research Society, vol. 29(3), November.
    7. Gould, Brian W. & Dong, Diansheng, 2004. "Product Quality And The Demand For Food: The Case Of Urban China," 2004 Annual meeting, August 1-4, Denver, CO 20010, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Choi, Hee Jung & Wohlgenant, Michael K., 2012. "Demand Analysis of Fluid Milk with Different Attributes," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124746, Agricultural and Applied Economics Association.
    9. Stewart, Hayden & Dong, Diansheng & Carlson, Andrea, 2012. "Is Generational Change Contributing to the Decline in Fluid Milk Consumption?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(3), December.
    10. Dharmasena, Senarath & Capps, Oral, Jr., 2009. "Demand Interrelationships of At-Home Nonalcoholic Beverage Consumption in the United States," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49443, Agricultural and Applied Economics Association.
    11. Davis, Christopher G. & Dong, Diansheng & Blayney, Donald P. & Yen, Steven T. & Stillman, Richard, 2012. "U.S. Fluid Milk Demand: A Disaggregated Approach," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 15(1).

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