An Analysis of Demand Elasticities for Fluid Milk Products in the U.S
AbstractThis study examines retail fluid milk products purchase data from Nielsen 2005 home scan data. The demand for seven categories of fluid milk products were estimated: whole milk, whole flavored milk, reduced fat milk, flavored reduced fat milk, buttermilk, canned milk and all other fluid milk products. Analyses of the purchases of seven fluid milk categories based on the Nielsen 2005 home scan retail data are used to determine the roles marital status, age, race, education, female employment status and location play in the empirical estimations of aggregate demand elasticities. To derive the demand elasticities, a censored translog demand system is used. The results reveal that price and income are the main determinants of demand for fluid milk products with a few minor determinants. All own-price elasticities are greater than unity for all fluid milk categories except for the compensated reduced fat milk. All expenditure elasticities are inelastic except for reduced fat milk and most of the fluid milk categories are substitutes.
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Bibliographic InfoPaper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51791.
Date of creation: Aug 2009
Date of revision:
Nielsen home scan retail data; milk demand; elasticities; fluid milk; reduced fat milk; whole milk; flavored milk; canned milk; buttermilk; non-linear AIDS; censored translog demand system; Consumer/Household Economics; Demand and Price Analysis; C25; D12; Q11;
Find related papers by JEL classification:
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
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