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Modeling fresh organic produce consumption with scanner data: a generalized double hurdle model approach

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Author Info

  • Feng Zhang

    (Department of Agricultural and Applied Economics, University of Georgia, Athens, GA 30602-7509 and Deloitte Consulting LLP, 111 S. Wacker Drive, Chicago, IL 60025)

  • Chung L. Huang

    (Department of Agricultural and Applied Economics, University of Georgia, 313-E Conner Hall, Athens, GA 30602-7509)

  • Biing-Hwan Lin

    (Economic Research Service, U.S. Department of Agriculture, Room N2110, 1800 M Street NW, Washington, DC 20036-5831)

  • James E. Epperson

    (Department of Agricultural and Applied Economics, University of Georgia, 315 Conner Hall, University of Georgia, Athens, GA 30602-7509)

Abstract

Previous studies using consumer surveys based on contingent valuations gave inconsistent or even contradictory results with respect to the impact of some consumer characteristics on organic foods consumption. Using actual retail-level data, this study provides an objective view of the consumers' social economic characteristics related to the growth of the fresh organic produce market with a generalized double hurdle model. Market participation and conditional|unconditional consumption elasticities were computed for the generalized double hurdle model. [EconLit citations: C240, D120, Q110]. © 2008 Wiley Periodicals, Inc.

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File URL: http://hdl.handle.net/10.1002/agr.20176
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Bibliographic Info

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

Volume (Year): 24 (2008)
Issue (Month): 4 ()
Pages: 510-522

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Handle: RePEc:wly:agribz:v:24:y:2008:i:4:p:510-522

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

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References

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  1. Gary D. Thompson, 1998. "Consumer Demand for Organic Foods: What We Know and What We Need to Know," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1113-1118.
  2. Dimitri, Carolyn & Greene, Catherine R., 2002. "Recent Growth Patterns In The U.S. Organic Foods Market," Agricultural Information Bulletins 33715, United States Department of Agriculture, Economic Research Service.
  3. Steven T. Yen & Andrew M. Jones, 1997. "Household Consumption of Cheese: An Inverse Hyperbolic Sine Double-Hurdle Model with Dependent Errors," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 246-251.
  4. Steven Yen, 2005. "Zero observations and gender differences in cigarette consumption," Applied Economics, Taylor & Francis Journals, vol. 37(16), pages 1839-1849.
  5. Newhouse, Joseph P, 1987. "Health Economics and Econometrics," American Economic Review, American Economic Association, vol. 77(2), pages 269-74, May.
  6. 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.
  7. Diansheng Dong & Chanjin Chung & Harry Kaiser, 2004. "Modelling milk purchasing behaviour with a panel data double-hurdle model," Applied Economics, Taylor & Francis Journals, vol. 36(8), pages 769-779.
  8. Jolly, Desmond A., 1991. "Differences Between Buyers and Nonbuyers of Organic Produce and Willingness to Pay Organic Price Premiums," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 9(1).
  9. Wagner, Janet & Hanna, Sherman, 1983. " The Effectiveness of Family Life Cycle Variables in Consumer Expenditure Research," Journal of Consumer Research, University of Chicago Press, vol. 10(3), pages 281-91, December.
  10. Huang, Chung L, 1996. "Consumer Preferences and Attitudes towards Organically Grown Produce," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 23(3), pages 331-42.
  11. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  12. Helen H. Jensen & Steven T. Yen, 1995. "U.S. Food Expenditures Away From Home by Type of Meal," Center for Agricultural and Rural Development (CARD) Publications 95-wp143, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  13. Blisard, Noel & Stewart, Hayden & Jolliffe, Dean, 2004. "Low-Income Households' Expenditures On Fruits And Vegetables," Agricultural Economics Reports 34041, United States Department of Agriculture, Economic Research Service.
  14. Jones, Andrew M, 1989. "A Double-Hurdle Model of Cigarette Consumption," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(1), pages 23-39, Jan.-Mar..
  15. Lin, Tsai-Fen & Schmidt, Peter, 1984. "A Test of the Tobit Specification against an Alternative Suggested by Cragg," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 174-77, February.
  16. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-44, September.
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Citations

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Cited by:
  1. Campbell, Benjamin L. & Khachatryan, Hayk & Behe, Bridget K. & Dennis, Jennifer & Hall, Charles, 2014. "U.S. and Canadian Consumer Perception of Local and Organic Terminology," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 17(2).
  2. Schroeck, Rebecca, 2011. "A Demand System Analysis of Organic and Conventional Fresh Milk in Germany Segmented by Consumer Groups," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115995, European Association of Agricultural Economists.
  3. Costanigro, Marco & Kroll, Stephan & Thilmany, Dawn D., 2012. "Local, Organic, Conventional— Asymmetric Effects of Information and Taste on Label Preferences in an Experimental Auction," 2012 AAEA/EAAE Food Environment Symposium, May 30-31, Boston, MA 123199, Agricultural and Applied Economics Association.
  4. Schrock, Rebecca, 2010. "Determinants Of The Demand For Organic And Conventional Fresh Milk In Germany– An Econometric Analysis," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116387, European Association of Agricultural Economists & Agricultural and Applied Economics Association.
  5. Erica Herpen & Erjen Nierop & Laurens Sloot, 2012. "The relationship between in-store marketing and observed sales for organic versus fair trade products," Marketing Letters, Springer, vol. 23(1), pages 293-308, March.

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