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Estimation of Demand Functions Using Cross-Sectional Household Data: The Problem Revisited

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  • Diansheng Dong
  • J.S. Shonkwiler
  • Oral Capps

Abstract

A procedure that corrects for selectivity bias is proposed to estimate demand functions using cross-sectional data under the assumption that prices vary across households. This procedure, which extends the work by Cox and Wohlgenant, includes a two-equation system of expenditure and unit value functions. This model is applied to household expenditures for beef steaks and roasts. Copyright 1998, Oxford University Press.

Suggested Citation

  • Diansheng Dong & J.S. Shonkwiler & Oral Capps, 1998. "Estimation of Demand Functions Using Cross-Sectional Household Data: The Problem Revisited," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 466-473.
  • Handle: RePEc:oup:ajagec:v:80:y:1998:i:3:p:466-473
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