IDEAS home Printed from https://ideas.repec.org/a/ags/joaaec/15273.html
   My bibliography  Save this article

Double-Hurdle Model With Bivariate Normal Errors: An Application To U.S. Rice Demand

Author

Listed:
  • Gao, Xiaoming
  • Wailes, Eric J.
  • Cramer, Gail L.

Abstract

Per capita rice consumption in the U.S. has doubled over the past decade. The effects of social and demographic variables on the household's rice consumption decisions are analyzed along with income and price variables. A double-hurdle model is used to solve simultaneously the consumer decisions whether to purchase rice and how much. The joint decision hypothesis is tested and accepted. The non-normal distribution of error terms may be responsible for possible bias in the empirical test of the joint decision hypothesis. The hyperbolic sine transformation is used to correct the problem in this study prior to testing the joint decision hypothesis.

Suggested Citation

  • Gao, Xiaoming & Wailes, Eric J. & Cramer, Gail L., 1995. "Double-Hurdle Model With Bivariate Normal Errors: An Application To U.S. Rice Demand," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(2), pages 1-14, December.
    • Handle: RePEc:ags:joaaec:15273
    DOI: 10.22004/ag.econ.15273
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/15273/files/27020363.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.15273?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Heien, Dale & Wessells, Cathy Roheim, 1990. "Demand Systems Estimation with Microdata: A Censored Regression Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(3), pages 365-371, July.
    2. Jones, Andrew M, 1992. "A Note on Computation of the Double-Hurdle Model with Dependence with an Application to Tobacco Expenditure," Bulletin of Economic Research, Wiley Blackwell, vol. 44(1), pages 67-74, January.
    3. Blundell, Richard & Pashardes, Panos & Weber, Guglielmo, 1993. "What Do We Learn About Consumer Demand Patterns from Micro Data?," American Economic Review, American Economic Association, vol. 83(3), pages 570-597, June.
    4. George, P.S. & King, Gordon A., 1971. "Consumer Demand for Food Commodities in the United States with Projections for 1980," Monographs, University of California, Davis, Giannini Foundation, number 11936, December.
    5. Huang, Kuo S., 1985. "U.S. Demand for Food: A Complete System of Price and Income Effects," Technical Bulletins 157014, United States Department of Agriculture, Economic Research Service.
    6. McDonald, John F & Moffitt, Robert A, 1980. "The Uses of Tobit Analysis," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 318-321, May.
    7. Reynolds, Anderson & Shonkwiler, J S, 1991. "Testing and Correcting for Distributional Misspecifications in the Tobit Model: An Application of the Information Matrix Test," Empirical Economics, Springer, vol. 16(3), pages 313-323.
    8. Blundell, Richard & Meghir, Costas, 1987. "Bivariate alternatives to the Tobit model," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 179-200.
    9. Keen, Michael, 1986. "Zero Expenditures and the Estimation of Engel Curves," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(3), pages 277-286, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Castro N. Gichuki & Jiqin Han & Tim Njagi, 2020. "The Impact of Household Wealth on Adoption and Compliance to GLOBAL GAP Production Standards: Evidence from Smallholder farmers in Kenya," Agriculture, MDPI, vol. 10(2), pages 1-15, February.
    2. Samuel Sebsibie & Workineh Asmare & Tessema Endalkachew, 2015. "Agricultural Technology Adoption and Rural Poverty: a Study on Smallholders in Amhara Regional State, Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 23(2), December.
    3. Caillavet, France & Nichele, Veronique & Soler, Louis-Georges, 2008. "Are nutritional claims an adequate tool for public health? Evidence from food purchases in France," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44007, European Association of Agricultural Economists.
    4. Ebrahim Endris & Andualem Kassegn, 2023. "Profitability of Agricultural Micro and Small-Scale Enterprise in North Wollo Zone, Amhara Regional State, Ethiopia," SAGE Open, , vol. 13(2), pages 21582440231, May.
    5. Benjamin Bittschi & Ines Fortin & Sebastian Koch & Richard Sellner & Simon Loretz & Gregor Zwirn, 2019. "Price Elasticities and Implied Tax Revenue for Alcoholic Beverages. Evidence from Poland, France and Spain," WIFO Working Papers 579, WIFO.
    6. Angulo, Ana María & Gil, José María & Mur, Jesús & Dhehibi, Boubaker, 2000. "The Effect Of Households Location On The Spanish Demand For Food: A Panel Data Approach," ERSA conference papers ersa00p124, European Regional Science Association.
    7. Victor Afari-Sefa & Jean Claude Bidogeza & Yannick Djoumessi & Cyrille Kamdem, 2018. "Determinants of Smallholder Vegetable Farmers Credit Access and Demand in Southwest region, Cameroon," Economics Bulletin, AccessEcon, vol. 38(2), pages 1231-1240.
    8. Raju Ghimire & Wen-Chi Huang, 2015. "Household wealth and adoption of improved maize varieties in Nepal: a double-hurdle approach," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 7(6), pages 1321-1335, December.
    9. Murray Smith, 2003. "On dependency in double-hurdle models," Statistical Papers, Springer, vol. 44(4), pages 581-595, October.
    10. Angulo, Ana Maria & Gil, Jose Maria & Gracia, Azucena, 2001. "The demand for alcoholic beverages in Spain," Agricultural Economics, Blackwell, vol. 26(1), pages 71-83, October.
    11. Boubaker Dhehibi & Gil, J. & Angulo, A.Mª & Mur, J., 2001. "Calidad Nutricional y demanda de carnes en España: un enfoque con datos de panel," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 18, pages 21-39, Agosto.
    12. Apind, Benard Owino, 2015. "Determinants Of Smallholder Farmers Market Participation; A Case Study Of Rice Marketing In Ahero Irrigation Scheme," Research Theses 265572, Collaborative Masters Program in Agricultural and Applied Economics.
    13. Kaliba, Aloyce R. & Mushi, Richard J. & Gongwe, Anne G. & Mazvimavi, Kizito, 2020. "A typology of adopters and nonadopters of improved sorghum seeds in Tanzania: A deep learning neural network approach," World Development, Elsevier, vol. 127(C).
    14. Egemen İPEK, 2019. "An Empirical Study on Alcohol Participation and Consumption Decision in Turkey," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(41).
    15. Jou, Rong-Chang & Kuo, Chung-Wei & Chiu, Yi-Chun, 2022. "Bidding behaviors for international airline seats in short/long distance flights," Transportation Research Part A: Policy and Practice, Elsevier, vol. 163(C), pages 55-79.
    16. Chung-Wei Kuo & Rong-Chang Jou & Yi-Chun Chiu, 2023. "The factors affecting people’s willingness in participating in and paying for upgrading their seats from the economy class to the premium class," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-10, December.
    17. James Carroll & Siobhan McCarthy & Carol Newman, 2005. "An Econometric Analysis of Charitable Donations in the Republic of Ireland," The Economic and Social Review, Economic and Social Studies, vol. 36(3), pages 229-249.
    18. Djoumessi, Yannick F. & Kamdem, Cyrille B. & Afari-sefa, Victor & Bidogeza, Jean-Claude, 2018. "Determinants of Smallholder Vegetable Farmers Credit Access and Demand in Southwest region, Cameroon," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 38(2), pages 1231-1240.
    19. Muhammad Yaseen & Neha Thapa & Supawan Visetnoi & Shoukat Ali & Shahab E. Saqib, 2023. "Factors Determining the Farmers’ Decision for Adoption and Non-Adoption of Oil Palm Cultivation in Northeast Thailand," Sustainability, MDPI, vol. 15(2), pages 1-19, January.
    20. Miftha Beshir & Menfese Tadesse & Fantaw Yimer & Nicolas Brüggemann, 2022. "Factors Affecting Adoption and Intensity of Use of Tef- Acacia decurrens -Charcoal Production Agroforestry System in Northwestern Ethiopia," Sustainability, MDPI, vol. 14(8), pages 1-15, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. James Carroll & Siobhan McCarthy & Carol Newman, 2005. "An Econometric Analysis of Charitable Donations in the Republic of Ireland," The Economic and Social Review, Economic and Social Studies, vol. 36(3), pages 229-249.
    3. Beznoska, Martin, 2014. "Estimating a consumer demand system of energy, mobility and leisure: A microdata approach for Germany," Discussion Papers 2014/8, Free University Berlin, School of Business & Economics.
    4. Helen H. Jensen & Steven T. Yen, 1996. "Food Expenditures Away From Home by Type of Meal," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 44(1), pages 67-80, March.
    5. Okrent, Abigail M. & Alston, Julian M., 2011. "Demand for Food in the United States: A Review of Literature, Evaluation of Previous Estimates, and Presentation of New Estimates of Demand," Monographs, University of California, Davis, Giannini Foundation, number 251908, December.
    6. David Aristei & Luca Pieroni, 2008. "A double-hurdle approach to modelling tobacco consumption in Italy," Applied Economics, Taylor & Francis Journals, vol. 40(19), pages 2463-2476.
    7. Eakins, John, 2016. "An application of the double hurdle model to petrol and diesel household expenditures in Ireland," Transport Policy, Elsevier, vol. 47(C), pages 84-93.
    8. Fadhuile, Adelaide & Lemarie, Stephane & Pirotte, Alain, 2011. "Pesticides Uses in Crop Production: What Can We Learn from French Farmers Practices?," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103654, Agricultural and Applied Economics Association.
    9. A. Montini, 1999. "I consumi alimentari delle famiglie italiane: un modello per le decisioni di consumo extradomestico utilizzando i microdati di spesa familiare," Working Papers 364, Dipartimento Scienze Economiche, Universita' di Bologna.
    10. Stewart, Jay, 2013. "Tobit or not Tobit?," Journal of Economic and Social Measurement, IOS Press, issue 3, pages 263-290.
    11. Rinaldo 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.
    12. Beibei Wu & Xudong Shang & Yongfu Chen, 2021. "Household dairy demand by income groups in an urban Chinese province: A multistage budgeting approach," Agribusiness, John Wiley & Sons, Ltd., vol. 37(3), pages 629-649, July.
    13. Abdulbaki Bilgic & Wojciech Florkowski & Cuma Akbay, 2010. "Demand for cigarettes in Turkey: an application of count data models," Empirical Economics, Springer, vol. 39(3), pages 733-765, December.
    14. Langyintuo, Augustine S. & Mungoma, Catherine, 2008. "The effect of household wealth on the adoption of improved maize varieties in Zambia," Food Policy, Elsevier, vol. 33(6), pages 550-559, December.
    15. Phillips, Mark & Hueth, Darrell L. & Just, Richard E., 1989. "Estimating Cost of Banning Agricultural Chemicals: The Case of Maneb and Maneb Alternatives," Working Papers 197631, University of Maryland, Department of Agricultural and Resource Economics.
    16. Xavier Labandeira & José M. Labeaga & Miguel Rodríguez, 2006. "A Residential Energy Demand System for Spain," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 87-112.
    17. Brannlund, Runar & Nordstrom, Jonas, 2004. "Carbon tax simulations using a household demand model," European Economic Review, Elsevier, vol. 48(1), pages 211-233, February.
    18. Nordstrom, Jonas & Thunstrom, Linda, 2007. "Effects of Economic Policies Aimed at Encouraging a Healthier Grain Consumption," 2007 1st Forum, February 15-17, 2007, Innsbruck, Austria 6611, International European Forum on System Dynamics and Innovation in Food Networks.
    19. Richard Mussa, 2013. "Rural--urban differences in parental spending on children's primary education in Malawi," Development Southern Africa, Taylor & Francis Journals, vol. 30(6), pages 789-811, December.
    20. Beltran, Jesusa C. & Pannell, David J. & Doole, Graeme J. & White, Benedict, 2011. "Factors that affect the use of herbicides in Philippine rice farming systems," Working Papers 108769, University of Western Australia, School of Agricultural and Resource Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:joaaec:15273. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/saeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.