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Microeconometric Models of Infrequently Purchased Goods: An Application to Household Pork Consumption

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Author Info
Su, Shew-Jiuan B
Yen, Steven T
Abstract

The double-hurdle and infrequency-of-purchase models are generalized with the inverse hyperbolic sine transformation in the dependent variable. The resulting specifications feature more flexible parameterization and error distributions than the untransformed models. Using the 1987-88 Nationwide Food Consumption Survey data on household pork consumption, a non-nested test suggests that the IHS double-hurdle model provides better characterization of the data-generating process than the IHS infrequency-of-purchase model but the elasticities derived from these models are similar. Own-price effects on the probability and level of consumption are negative and significant but the elasticities are small. Income and cross-price effects are not significant. Household age composition, education, gender of meal planner, and race are among the demographic variables that affect consumption.

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Publisher Info
Article provided by Springer in its journal Empirical Economics.

Volume (Year): 21 (1996)
Issue (Month): 4 ()
Pages: 513-33
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Handle: RePEc:spr:empeco:v:21:y:1996:i:4:p:513-33

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  1. Carol Newman & Maeve Henchion & Alan Matthews, 2001. "A Double-Hurdle Model of Irish Household Expenditure on Prepared Meals," Trinity Economics Papers 200119, Trinity College Dublin, Department of Economics. [Downloadable!]
  2. Carol Newman & Maeve Henchion & Alan Matthews, 2003. "A double-hurdle model of Irish household expenditure on prepared meals," Applied Economics, Taylor and Francis Journals, vol. 35(9), pages 1053-1061, January. [Downloadable!] (restricted)
  3. David Aristei & Luca Pieroni, 2007. "A Double-Hurdle Approach to Modelling Tobacco Consumption in Italy," Quaderni del Dipartimento di Economia, Finanza e Statistica 29/2007, Università di Perugia, Dipartimento Economia, Finanza e Statistica. [Downloadable!]
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