Mexican Meat Demand at the Table Cut Level: Estimating a Censored Demand System in a Complex Survey

Demand elasticities at the table cut level are computed from a Mexican survey of household incomes and weekly expenditures, which is a stratified sample. A censored demand system is estimated incorporating stratification variables and it results in unbiased parameter and elasticity estimates, which can be interpreted as estimates of all Mexican meat-consuming households. Their standard errors are rigorously approximated by bootstrapping. Several indicators of heterogeneous meat-cut demands are found. Volumes traded differ among the table cuts of meats; the probability of buying a particular meat cut changes across meat cuts and geographical regions; and cases of substitutability and complementarity are identified within and across meat categories.