A Double-Hurdle Model Of Food Demand With Endogenous Unit Values
AbstractThis study develops a unique double-hurdle model of demand for composite food commodities which endogenizes unit values. The model structure allows us to account for the inability to observe such values for non-purchasing households and simultaneously adjusts for quality demand effects reflected in these unit values. Application to Mexican household food expenditure data shows the importance of controlling for the quality of composite goods. We find that poultry and pork expenditures depend on both quantity demanded and quality desired.
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Bibliographic InfoPaper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 1999 Annual meeting, August 8-11, Nashville, TN with number 21635.
Date of creation: 1999
Date of revision:
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double-hurdle; unit value; household survey data; composite commodity; food demand; quality effects; Consumer/Household Economics; Demand and Price Analysis;
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