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An Empirical Analysis of Household Demand for Organic and Conventional Flour in the United States: Evidence from the 2014 Nielsen Homescan Data

Author

Listed:
  • Bakhtavoryan, Rafael
  • Poghosyan, Armine
  • Lopez, Jose A.
  • Ogunc, Asli

Abstract

Using the 2014 Nielsen Homescan panel data, the Heckman two-stage sample selection model estimates the likelihood of purchasing organic and conventional flour as well as the quantity purchased of each. A number of demographic variables are found to be statistically significant impacting the likelihood of purchasing organic and conventional flour. Own-price elasticities of demand for organic and conventional flour indicate that the demand for both flour types is inelastic. Cross-price elasticities of demand suggest an asymmetric pattern between organic and conventional flour demand. Finally, organic and conventional flour are found to be inferior goods.

Suggested Citation

  • Bakhtavoryan, Rafael & Poghosyan, Armine & Lopez, Jose A. & Ogunc, Asli, 2019. "An Empirical Analysis of Household Demand for Organic and Conventional Flour in the United States: Evidence from the 2014 Nielsen Homescan Data," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 37(2).
    • Handle: RePEc:ags:jloagb:302412
    DOI: 10.22004/ag.econ.302412
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    File URL: https://ageconsearch.umn.edu/record/302412/files/1FlourRafael-JABFall2019-final.pdf
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    Cited by:

    1. Tanushree Haldar & A. Damodaran, 2022. "Can cooperatives influence farmer’s decision to adopt organic farming? Agri-decision making under price volatility," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 5718-5742, April.

    More about this item

    Keywords

    Agribusiness; Demand and Price Analysis;

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