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Modeling quality demand with data from Household Budget Surveys: An application to meat and fish products in Greece

  • Vassilopoulos, Achilleas
  • Klonaris, Stathis
  • Drichoutis, Andreas C.
  • Lazaridis, Panagiotis

In this paper, we employ a method to examine the factors affecting quality choice by Greek households, using cross-sectional survey data. We illustrate the method using the raw data of the 2004/05 Household Budget Survey for meat and fish products. Quality elasticities of total food expenditure and household's age structure are derived. To cope with the zero expenditure problem, Heckman's two-step method is employed. Results generally suggest that several socio-economic factors affect quality demand for meat and fish.

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Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 29 (2012)
Issue (Month): 6 ()
Pages: 2744-2750

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Handle: RePEc:eee:ecmode:v:29:y:2012:i:6:p:2744-2750
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30411

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  1. Gould, Brian W., 1996. "Factors Affecting U.S. Demand For Reduced-Fat Fluid Milk," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(01), July.
  2. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  3. Pollak, Robert A & Wales, Terence J, 1978. "Estimation of Complete Demand Systems from Household Budget Data: The Linear and Quadratic Expenditure Systems," American Economic Review, American Economic Association, vol. 68(3), pages 348-59, June.
  4. Xiaohua Yu & David Abler, 2009. "The Demand for Food Quality in Rural China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 57-69.
  5. repec:ner:tilbur:urn:nbn:nl:ui:12-3106945 is not listed on IDEAS
  6. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492 National Bureau of Economic Research, Inc.
  7. Deaton, A., 1988. "Quality, Quantity, And Spatial Variation Of Price," Papers 30, World Bank - Living Standards Measurement.
  8. Murphy, Kevin M & Topel, Robert H, 2002. "Estimation and Inference in Two-Step Econometric Models," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 88-97, January.
  9. Naeem Ahmed & Matthew Brzozowski & Thomas Crossley, 2006. "Measurement errors in recall food consumption data," IFS Working Papers W06/21, Institute for Fiscal Studies.
  10. 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.
  11. J. Scott Shonkwiler & Steven T. Yen, 1999. "Two-Step Estimation of a Censored System of Equations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 972-982.
  12. Deaton, A., 1988. "Price Elasticities From Survey Data: Extensions And Indonesian Results," Papers 138, Princeton, Woodrow Wilson School - Development Studies.
  13. Frederic Vermeulen, 2001. "A note on Heckman-type corrections in models for zero expenditures," Applied Economics, Taylor & Francis Journals, vol. 33(9), pages 1089-1092.
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  15. Panagiotis Lazaridis, 2004. "Demand elasticities derived from consistent estimation of Heckman-type models," Applied Economics Letters, Taylor & Francis Journals, vol. 11(8), pages 523-527.
  16. Chanjin Chung, 2006. "Quality bias in price elasticity," Applied Economics Letters, Taylor & Francis Journals, vol. 13(4), pages 241-245.
  17. Cramer, J S, 1973. "Interaction of Income and Price in Consumer Demand," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(2), pages 351-63, June.
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