IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v73y1991i2p496-501..html
   My bibliography  Save this article

The Application and Economic Interpretation of Selectivity Models

Author

Listed:
  • Chung L. Huang
  • Robert Raunikar
  • Sukant Misra

Abstract

Substantial differences in economic interpretations may be inferred from the estimated selectivity model results. Using the demand for frozen concentrated orange juice (FCOJ) as an example, the study suggests that the consumption patterns are quite similar between national brand and private label when the marginal effects and elasticities are evaluated based on actual observations rather than unobserved latent variables. Results show that private label FCOJ is considered as a normal (inferior) good if the income effect is assessed based on actual (potential) purchases. The estimated cents-off elasticities for private label FCOJ also vary substantially depending on which approach is used.

Suggested Citation

  • Chung L. Huang & Robert Raunikar & Sukant Misra, 1991. "The Application and Economic Interpretation of Selectivity Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 496-501.
    • Handle: RePEc:oup:ajagec:v:73:y:1991:i:2:p:496-501.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/1242734
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. repec:ags:ijag24:346833 is not listed on IDEAS
    2. Colin Vance & Jacqueline Geoghegan, 2004. "Modeling the Determinants of Semi-Subsistent and Commercial Land Uses in an Agricultural Frontier of Southern Mexico: A Switching Regression Approach," International Regional Science Review, , vol. 27(3), pages 326-347, July.
    3. Doris Läpple & Thia Hennessy & Carol Newman, 2013. "Quantifying the Economic Return to Participatory Extension Programmes in Ireland: an Endogenous Switching Regression Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(2), pages 467-482, June.
    4. Mokhtarian, Patricia L. & Cao, Xinyu, 2008. "Examining the impacts of residential self-selection on travel behavior: A focus on methodologies," Transportation Research Part B: Methodological, Elsevier, vol. 42(3), pages 204-228, March.
    5. Alene, Arega D. & Manyong, V.M. & Omanya, G. & Mignouna, H.D. & Bokanga, M. & Odhiambo, G., 2008. "Smallholder market participation under transactions costs: Maize supply and fertilizer demand in Kenya," Food Policy, Elsevier, vol. 33(4), pages 318-328, August.
    6. Haile, Kaleab K. & Nillesen, Eleonora & Tirivayi, Nyasha, 2020. "Impact of formal climate risk transfer mechanisms on risk-aversion: Empirical evidence from rural Ethiopia," World Development, Elsevier, vol. 130(C).
    7. Heltberg, R. & Tarp, F., 2002. "Agricultural supply response and poverty in Mozambique," Food Policy, Elsevier, vol. 27(2), pages 103-124, April.
    8. Edilegnaw, Wale, 2006. "What do Farmers financially lose if they fail to use improved Seeds? Some Econometric Results for Wheat and Implications for Agricultural Extension Policy in Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 12(2), pages 1-81, November.
    9. Wale, Edilegnaw, 2008. "A study on financial opportunity costs of growing local varieties of sorghum in Ethiopia: Implications for on-farm conservation policy," Ecological Economics, Elsevier, vol. 64(3), pages 603-610, January.
    10. Ayal Kimhi, 1999. "Estimation of an endogenous switching regression model with discrete dependent variables: Monte-Carlo analysis and empirical application of three estimators," Empirical Economics, Springer, vol. 24(2), pages 225-241.
    11. Cao, Xinyu & Mokhtarian, Patricia & Handy, Susan, 2008. "Examining The Impacts of Residential Self-Selection on Travel Behavior: Methodologies and Empirical Findings," Institute of Transportation Studies, Working Paper Series qt08x1k476, Institute of Transportation Studies, UC Davis.
    12. Arega D. Alene & V. M. Manyong & Eric F. Tollens & Steffen Abele, 2009. "Efficiency–equity tradeoffs and the scope for resource reallocation in agricultural research: evidence from Nigeria," Agricultural Economics, International Association of Agricultural Economists, vol. 40(1), pages 1-14, January.
    13. Kimhi, Ayal, 1991. "Estimation of Endogenous Switching Regression Models with Discrete Dependent Variables: An Application to the Estimation of Farm Women's Farm and Off-Farm Participation Equations," Working Papers 197766, University of Maryland, Department of Agricultural and Resource Economics.
    14. Mmbando, Frank E. & Wale, Edilegnaw Z. & Baiyegunhi, Lloyd J.S., 2015. "Determinants of smallholder farmers' participation in maize and pigeonpea markets in Tanzania," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 54(1), June.

    More about this item

    Statistics

    Access and download statistics

    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:oup:ajagec:v:73:y:1991:i:2:p:496-501.. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.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.