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Modeling U.S. Butter Consumption With Zero Observations

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  • Yen, Steven T.
  • Su, Shew-Jiuan

Abstract

A heteroscedastic double-hurdle model is used to investigate household butter consumption in the United States. Results suggest that failure to incorporate heteroscedastic errors may lead to unreliable elasticity estimates. Decomposition of the effects of variables leads to insightful information and makes the double-hurdle model a more useful tool in micro demand analysis. Larger and higher-income households are more likely to consume butter than others and also consume more, but income elasticity is very small. Age, region, and seasonality are among the other significant determinants of household butter consumption.

Suggested Citation

  • Yen, Steven T. & Su, Shew-Jiuan, 1995. "Modeling U.S. Butter Consumption With Zero Observations," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 24(1), pages 1-9, April.
    • Handle: RePEc:ags:arerjl:31471
    DOI: 10.22004/ag.econ.31471
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    References listed on IDEAS

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    Cited by:

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    3. Bukari, Chei & Broermann, Shanaz & Okai, Davidson, 2021. "Energy poverty and health expenditure: Evidence from Ghana," Energy Economics, Elsevier, vol. 103(C).
    4. Carol Newman & Maeve Henchion & Alan Matthews, 2003. "A double-hurdle model of Irish household expenditure on prepared meals," Applied Economics, Taylor & Francis Journals, vol. 35(9), pages 1053-1061.
    5. Frank Crowley & John Eakins & Declan Jordan, 2012. "Participation,Expenditure and Regressivity in the Irish Lottery:Evidence from Irish Household Budget Survey 2004/2005," The Economic and Social Review, Economic and Social Studies, vol. 43(2), pages 199-225.
    6. Bardazzi, Rossella & Pazienza, Maria Grazia, 2018. "Ageing and private transport fuel expenditure: Do generations matter?," Energy Policy, Elsevier, vol. 117(C), pages 396-405.
    7. Seval Mutlu & Azucena Gracia, 2006. "Spanish food expenditure away from home (FAFH): by type of meal," Applied Economics, Taylor & Francis Journals, vol. 38(9), pages 1037-1047.
    8. Rong-Chang Jou & Yi-Hao Lu, 2021. "Car/Motorbike Drivers’ Willingness to Use and to Pay for Alcohol Interlock in Taiwan," IJERPH, MDPI, vol. 18(21), pages 1-18, November.
    9. Jungyeol Hong & Reuben Tamakloe & Dongjoo Park, 2019. "A Comprehensive Analysis of Multi-Vehicle Crashes on Expressways: A Double Hurdle Approach," Sustainability, MDPI, vol. 11(10), pages 1-22, May.

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