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The demand for value-added and convenience: A household production approach


Author Info

  • Timothy J. Richards

    (Arizona State University)

  • X. M. Gao

    (AT&T, Jacksonville, Florida)

  • Paul M. Patterson

    (Arizona State University)


Americans are consuming more complex carbohydrate-based foods. This study applies a household production model to investigate the role of US households' demand for value-added and convenience, both defined as nonmarket commodities, in complex carbohydrate consumption. Empirical estimates of a translog household production system using Nationwide Food Consumption Survey (NFCS) data from 1977-1978 and 1987-1988 provide estimates of these commodities' shadow values. The shadow values are used, in turn, to estimate demand functions for value-added and convenience. The results show highly significant and negative demand elasticities for both commodities, suggesting that this is a valuable tool for analyzing the structure of their demand. © 1998 John Wiley & Sons, Inc.

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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

Volume (Year): 14 (1998)
Issue (Month): 5 ()
Pages: 363-378

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Handle: RePEc:wly:agribz:v:14:y:1998:i:5:p:363-378

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  1. McCracken, Vicki A. & Marotz, Craig C., 1989. "Consumer Potato Demand," Journal of Food Distribution Research, Food Distribution Research Society, vol. 20(2), September.
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Cited by:
  1. Richards, Timothy J. & Kagan, Albert & Gao, Xiaoming, 1997. "Factors Influencing Changes In Potato And Potato Substitute Demand," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(1), April.
  2. Harris, James Michael, 2005. "Using Nielsen Homescan Data and Complex Design Techniques to Analyze Convenience Food Expenditures," 2005 Annual meeting, July 24-27, Providence, RI 19344, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).


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