Demand For Breakfast Cereals: Whole Grains Guidance And Food Choice
AbstractWhen using household-level data to examine consumer demand it is common to find that consumers purchase only a subset of the available goods, setting the demand for the remaining goods to zero. Ignoring such censoring of the dependent variables can lead to estimators with poor statistical properties and estimates that lead to poor policy decisions. In this paper we investigate household demand for four types of breakfast cereals, such as whole grain ready-to-eat, non-whole grain ready-to-eat, whole grain hot and non-whole grain hot cereals, using a censored Al- most Ideal Demand System (AIDS) and estimate the parameters of the model via Bayesian methods. Using household level scanner data (ACNielsen Homescan) we find that demand for all types of breakfast cereals is inelastic to changes in prices. The expenditure elasticity is slightly above unity for the whole grain ready-to-eat cereals suggesting that as the expenditure on cereals increases households will allocate proportionally more on whole-grain ready-to-eat cereals and less on other cereals.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists & Agricultural and Applied Economics Association in its series 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany with number 116445.
Date of creation: 2010
Date of revision:
AIDS model; Bayesian econometrics; censored; cereals; whole grains; Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; Health Economics and Policy; C11; C34; D12;
Find related papers by JEL classification:
- C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
- C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
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