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Disaggregated household meat demand with censored data

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  • Brian Coffey
  • Ted Schroeder
  • Thomas Marsh

Abstract

Previous research on meat demand has generally used highly aggregated data (across time, products and consumers). However, meat products across species are likely stronger substitutes than some products from the same species. Further, demand for specific meat products would be expected to respond differently to market information about food safety or other events. This study uses monthly consumer panel data collected between 1992 and 2000 to estimate a disaggregated meat product demand system. The use of the expectations maximization algorithm is introduced to estimate a demand system that adjusts for the econometric problem of censored data resulting from purchased shares of some products by individuals often being equal to zero. Results indicate that certain individual meat products have noticeably different own-price elasticities than existing aggregate meat product estimates of their respective species. Some individual meat products have stronger substitutes across species than within species (e.g. beef steak and pork chops are substitutes, but beef roast and ground beef or not substitutes for steak).

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Bibliographic Info

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

Volume (Year): 43 (2011)
Issue (Month): 18 ()
Pages: 2343-2363

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Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2343-2363

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Cited by:
  1. Martin Browning & Lars Gårn Hansen & Sinne Smed, 2013. "Rational inattention or rational overreaction? Consumer reactions to health news," IFRO Working Paper 2013/14, University of Copenhagen, Department of Food and Resource Economics.
  2. Bilgic, Abdulbaki & Yen, Steven T., 2013. "Household food demand in Turkey: A two-step demand system approach," Food Policy, Elsevier, vol. 43(C), pages 267-277.
  3. Tselepidakis, Elina, 2012. "Food Safety And The Demand For Meat Products," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124968, Agricultural and Applied Economics Association.
  4. Rentsch, Dennis & Damon, Amy, 2013. "Prices, poaching, and protein alternatives: An analysis of bushmeat consumption around Serengeti National Park, Tanzania," Ecological Economics, Elsevier, vol. 91(C), pages 1-9.

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