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Double-hurdle Model with Bivariate Normal Errors: An Application to U.S. Rice Demand

Author

Listed:
  • Gao, X.M.
  • 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, X.M. & 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, Cambridge University Press, vol. 27(2), pages 363-376, December.
    • Handle: RePEc:cup:jagaec:v:27:y:1995:i:02:p:363-376_02
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    1. 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.
    2. 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.
    3. 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.
    4. Apind, Benard Owino, "undated". "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.
    5. Samuel Sebsibie & Workineh Asmare & Tessema Endalkachew, . "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).
    6. 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.
    7. 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).
    8. 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.
    9. Egemen İPEK, 2019. "An Empirical Study on Alcohol Participation and Consumption Decision in Turkey," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(41).
    10. 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.
    11. 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," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 10(1), pages 1-10, December.
    12. 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.
    13. 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.
    14. 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.
    15. 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.
    16. 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.
    17. 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.
    18. 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.
    19. 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.
    20. Murray Smith, 2003. "On dependency in double-hurdle models," Statistical Papers, Springer, vol. 44(4), pages 581-595, October.

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