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Fish and meat demand in Canada: Regional differences and weak separability

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Author Info

  • Rémy Lambert

    (CRÉA, Université Laval)

  • Bruno Larue

    (CRÉA, 4417 Pavillon Paul-Comtois, FSAA, Université Laval, Ste-Foy, QC, Canada G1K 7P4)

  • Clément Yélou

    (CRÉA, Université Laval)

  • George Criner

    (Dept. of Resource Economics and Policy, University of Maine)

Abstract

The objective of this paper is to gauge to what extent there are regional differences in meat and fish demand across Canada. Three regions are defined for this purpose and the notorious problem of zeros in survey data is addressed by endogenizing the probability of purchase through the Shonkwiler and Yen approach applied to a QUAIDS demand system for each region. Probabilities of purchase and marginal effects are computed and compared as well as price and expenditure elasticities. The empirical distributions of the elasticities are simulated through bootstrapping. This allows us to formally test the null hypothesis of no regional differences between elasticities for central, western and Atlantic Canada and the null hypothesis of weak separability of fish from meats. While some significant regional differences were uncovered that can be exploited by food retailers, other findings were robust across regions. For example, the demand for fish tends to be more price and expenditure inelastic than the demand for meats. [EconLit citations: D120, C150, L660]. © 2006 Wiley Periodicals, Inc. Agribusiness 22: 175-199, 2006.

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Bibliographic Info

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

Volume (Year): 22 (2006)
Issue (Month): 2 ()
Pages: 175-199

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Handle: RePEc:wly:agribz:v:22:y:2006:i:2:p:175-199

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Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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  1. Gale E. West & Bruno Larue & Chedlia Touil & Shannon L. Scott, 2001. "The perceived importance of veal meat attributes in consumer choice decisions," Agribusiness, John Wiley & Sons, Ltd., vol. 17(3), pages 365-382.
  2. Preston, Ian & Laisney, François & Crawford, Ian A., 2002. "Estimation of Household Demand Systems with Theoretically Compatible Engel Curves and Unit Value Specifications," ZEW Discussion Papers 97-06 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  3. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
  4. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-59, July.
  5. Vermeulen, F.M.P., 2001. "A note on Heckman-type corrections in models for zero expenditures," Open Access publications from Tilburg University urn:nbn:nl:ui:12-3106945, Tilburg University.
  6. Heien, Dale & Wessells, Cathy Roheim, 1990. "Demand Systems Estimation with Microdata: A Censored Regression Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(3), pages 365-71, July.
  7. J. Scott Shonkwiler & Steven T. Yen, 1999. "Two-Step Estimation of a Censored System of Equations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 972-982.
  8. Panagiotis Lazaridis, 2003. "Household meat demand in Greece: A demand systems approach using microdata," Agribusiness, John Wiley & Sons, Ltd., vol. 19(1), pages 43-59.
  9. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
  10. Purcell, Wayne D., 1989. "The Case of Beef Demand: A Failure by the Discipline," Choices, Agricultural and Applied Economics Association, vol. 4(2).
  11. Moschini, GianCarlo, 1995. "Units of Measurement and the 'Stone Index' In Demand System Estimation," Staff General Research Papers 5058, Iowa State University, Department of Economics.
  12. Lariviere, Eric & Larue, Bruno & Chalfant, Jim, 2000. "Modeling the demand for alcoholic beverages and advertising specifications," Agricultural Economics, Blackwell, vol. 22(2), pages 147-162, March.
  13. Nelson, Forrest & Olson, Lawrence, 1978. "Specification and Estimation of a Simultaneous-Equation Model with Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(3), pages 695-709, October.
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Cited by:
  1. Larissa Drescher & Janneke Jonge & Ellen Goddard & Thomas Herzfeld, 2012. "Consumer’s stated trust in the food industry and meat purchases," Agriculture and Human Values, Springer, vol. 29(4), pages 507-517, December.
  2. Astrid Jonas & Jutta Roosen, 2008. "Demand for milk labels in Germany: organic milk, conventional brands, and retail labels," Agribusiness, John Wiley & Sons, Ltd., vol. 24(2), pages 192-206.
  3. Zhang, Xu & Goddard, Ellen W., 2010. "Analysis of Value-Added Meat Product Choice Behaviour by Canadian Households," Project Report Series 99703, University of Alberta, Department of Resource Economics and Environmental Sociology.
  4. 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.
  5. Anders, Sven & Moeser, Anke, 2008. "Using Retail Scanner Data to Assess the Demand for Value-based Ground Meat Products in Canada," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44154, European Association of Agricultural Economists.

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