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A Box-Cox Double Hurdle Model

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  • Andrew Jones
  • Steven Yen

Abstract

The double-hurdle model with dependence is extended by incorporating the Box-Cox transformation. The model nests a range of popular limited dependent variable models, including the Gaussian double-hurdle, the generalized Tobit, and two-part models. Estimates of US beef consumption suggest that the Box-Cox specification outperforms all other restrictive models. Price elasticities are small and similar to findings in the literature. Household age composition and demographic variables also play significant roles in determining beef consumption. Income and cross-price elasticities are insignificant. Copyright 2000 by Blackwell Publishers Ltd and The Victoria University of Manchester

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Paper provided by Department of Economics, University of York in its series Discussion Papers with number 94/5.

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Handle: RePEc:yor:yorken:94/5

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Postal: Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom
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Cited by:
  1. David Aristei & Luca Pieroni, 2007. "Addiction, Social Interactions and Gender Differences in Cigarette Consumption," Working Papers 39, University of Verona, Department of Economics.
  2. Martinez-Espineira, Roberto, 2006. "A Box-Cox Double-Hurdle model of wildlife valuation: The citizen's perspective," Ecological Economics, Elsevier, vol. 58(1), pages 192-208, June.
  3. R. Brau & M. Lippi Bruni & AM. Pinna, 2004. "Public vs private demand for covering long term care expenditures," Working Paper CRENoS 200408, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  4. Jean-Paul Chaze, 2005. "Assessing household health expenditure with Box-Cox censoring models," Health Economics, John Wiley & Sons, Ltd., vol. 14(9), pages 893-907.

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