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An Empirical Evaluation of Egg Demand in the United States

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  • Bakhtavoryan, Rafael
  • Hovhannisyan, Vardges
  • Devadoss, Stephen
  • Lopez, Jose

Abstract

We adopt an EASI model to estimate demand for omega-3, organic, cage-free, and conventional eggs in the United States. Our empirical framework accounts for demand inter-dependencies among these egg types, while allowing for unrestricted Engel curves, unobserved consumer heterogeneity, and a broader product and geographic coverage. We further address endogeneity of prices and expenditures and left-censoring induced by disaggregate data. Our results indicate that the demand for organic and cage-free eggs is price-elastic, while the demand for omega-3 and conventional eggs is price-inelastic. Additionally, we establish strong substitutability relationships between the eggs. Finally, we measure consumer welfare consequences of rising domestic egg prices brought by Japan’s egg import tariff reductions.

Suggested Citation

  • Bakhtavoryan, Rafael & Hovhannisyan, Vardges & Devadoss, Stephen & Lopez, Jose, 2021. "An Empirical Evaluation of Egg Demand in the United States," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 53(2), pages 280-300, May.
  • Handle: RePEc:cup:jagaec:v:53:y:2021:i:2:p:280-300_7
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