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Estimating the Censored Demand for U.S. Cheese Varieties Using Panel Data: Impact of Economic and Demographic Factors

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  • Bouhlal, Yasser
  • Capps, Oral, Jr.
  • Ishdorj, Ariun

Abstract

The United States cheese consumption has grown considerably over the years. Using Nielsen Homescan panel data for calendar years 2005 and 2006, this paper examines the effect of economic and socio-demographic factors on the demand for disaggregated cheese varieties. In this study, we estimated the censored demand for 14 cheese varieties and identified the respective own-price and cross-price elasticities. Also, non-price factors were determined affecting the purchase of each variety as well as the impact of generic dairy advertising. Results revealed that most of the natural cheese varieties have an elastic demand while the processed cheese products exhibited inelastic demands. Strong substitution and complementarity relationships were identified as well, and a two quarter carry-over effect of advertising was observed for most of cheese demands. Results also showed that household demographics affected the demands differently, depending on the nature of the cheese varieties.

Suggested Citation

  • Bouhlal, Yasser & Capps, Oral, Jr. & Ishdorj, Ariun, 2013. "Estimating the Censored Demand for U.S. Cheese Varieties Using Panel Data: Impact of Economic and Demographic Factors," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151298, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:151298
    DOI: 10.22004/ag.econ.151298
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    References listed on IDEAS

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    1. Davis, Christopher G. & Blayney, Donald & Dong, Diansheng & Yen, Steven T. & Johnson, Rachel J., 2011. "Will Changing Demographics Affect U.S. Cheese Demand?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 43(2), pages 259-273, May.
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    7. Schmit, Todd M. & Dong, Diansheng & Chung, Chanjin & Kaiser, Harry M. & Gould, Brian W., 2002. "Identifying The Effects Of Generic Advertising On The Household Demand For Fluid Milk And Cheese: A Two-Step Panel Data Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(1), pages 1-22, July.
    8. Diansheng Dong & Brian W. Gould & Harry M. Kaiser, 2004. "Food Demand in Mexico: An Application of the Amemiya-Tobin Approach to the Estimation of a Censored Food System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 1094-1107.
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    2. Scott Biden & Alan P. Ker & Stephen Duff, 2020. "Impacts of trade liberalization in Canada's supply managed dairy industry," Agricultural Economics, International Association of Agricultural Economists, vol. 51(4), pages 535-552, July.

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    Keywords

    Demand and Price Analysis; Food Consumption/Nutrition/Food Safety;

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