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Studying household purchasing and nonpurchasing behaviour for a frequently consumed commodity: two models

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Author Info

  • Diansheng Dong
  • Harry Kaiser

Abstract

A panel data double-hurdle model is developed to analyse household purchasing behaviour. The model, a time-series extension of Cragg's conventional double-hurdle model of censored consumption, is able to account not only for the censored nature of commodity purchases, but also for the temporal linkage of the purchase process. The panel data double-hurdle model is compared with the marked renewal model that has also been used for studying household purchasing behaviour. The empirical results of the double-hurdle model show that for household milk purchases hurdle due to noneconomic reasons exists. The results of the marked purchase renewal model showed that the duration dependence is positive. Both models fit the data well.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949272
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 40 (2008)
Issue (Month): 15 ()
Pages: 1941-1951

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Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:1941-1951

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Cited by:
  1. Christoph Engel & Peter G. Moffat, 2012. "Estimation of the House Money Effect Using Hurdle Models," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2012_13, Max Planck Institute for Research on Collective Goods.
  2. Dong, Diansheng & Lin, Biing-Hwan, 2009. "Fruit and Vegetable Consumption by Low-Income Americans: Would a Price Reduction Make a Difference?," Economic Research Report 55835, United States Department of Agriculture, Economic Research Service.

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