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Censored Quantile Regression and Purchases of Ice Cream

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  • Gustavsen, Geir Waehler
  • Jolliffe, Dean
  • Rickertsen, Kyrre

Abstract

The effects on purchases of ice cream of increasing the value added tax (VAT) for less healthy foods and removing the VAT for healthy foods are estimated. The effects on high- and low-purchasing households are estimated by using quantile regressions. Many households did not purchase ice cream and censored quantile regressions are estimated by a recently developed algorithm, which is simple, robust, and performs well near the censoring point. High-purchasing households will reduce their annual per capita purchases with 1.8 kilograms corresponding to an annual reduction of more than half a kilogram of body weight.

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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida with number 6534.

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Date of creation: 2008
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Handle: RePEc:ags:aaea08:6534

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Keywords: Censored quantile regression; ice cream; obesity; purchase; taxes; Food Consumption/Nutrition/Food Safety; Research Methods/ Statistical Methods;

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  1. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
  2. Hong H. & Chernozhukov V., 2002. "Three-Step Censored Quantile Regression and Extramarital Affairs," Journal of the American Statistical Association, American Statistical Association, vol. 97, pages 872-882, September.
  3. John L. Park & Oral Capps, 1997. "Demand for Prepared Meals by U.S. Households," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 814-824.
  4. Powell, James L., 1986. "Censored regression quantiles," Journal of Econometrics, Elsevier, vol. 32(1), pages 143-155, June.
  5. Buchinsky, Moshe, 1994. "Changes in the U.S. Wage Structure 1963-1987: Application of Quantile Regression," Econometrica, Econometric Society, vol. 62(2), pages 405-58, March.
  6. Fred Kuchler & Abebayehu Tegene & J. Michael Harris, 2005. "Taxing Snack Foods: Manipulating Diet Quality or Financing Information Programs?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(1), pages 4-20.
  7. Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
  8. Geir Wæhler Gustavsen & Kyrre Rickertsen, 2006. "A Censored Quantile Regression Analysis of Vegetable Demand: The Effects of Changes in Prices and Total Expenditure," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(4), pages 631-645, December.
  9. Bilias, Yannis & Chen, Songnian & Ying, Zhiliang, 2000. "Simple resampling methods for censored regression quantiles," Journal of Econometrics, Elsevier, vol. 99(2), pages 373-386, December.
  10. Amemiya, Takeshi, 1984. "Tobit models: A survey," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 3-61.
  11. Stewart, Hayden & Blisard, Noel & Jolliffe, Dean, 2003. "Do Income Constraints Inhibit Spending on Fruits and Vegetables Among Low-Income Households?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(03), December.
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Cited by:
  1. Achim Schmillen & Joachim Möller, 2010. "Determinants of Lifetime Unemployment. A Micro Data Analysis with Censored Quantile Regressions," Working Papers 090, Bavarian Graduate Program in Economics (BGPE).
  2. Pradhan, Jaya Prakash, 2010. "R&D strategy of small and medium enterprises in India: Trends and determinants," MPRA Paper 20951, University Library of Munich, Germany.
  3. Pradhan, Jaya Prakash, 2011. "Regional heterogeneity and firms’ innovation: the role of regional factors in industrial R&D in India," MPRA Paper 28096, University Library of Munich, Germany.
  4. Gustavsen, Geir Wæhler & Rickertsen, Kyrre, 2013. "Adjusting VAT rates to promote healthier diets in Norway: A censored quantile regression approach," Food Policy, Elsevier, vol. 42(C), pages 88-95.
  5. Schmillen, Achim & Möller, Joachim, 2012. "Distribution and determinants of lifetime unemployment," Labour Economics, Elsevier, vol. 19(1), pages 33-47.
  6. Gaurav Nayyar, 2009. "The Demand for Services in India. A Mirror Image of Engel's Law for Food?," Economics Series Working Papers 451, University of Oxford, Department of Economics.

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