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Testing the Infrequent Purchases Model Using Direct Measurement of Hidden Consumption from Food Stocks

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  • John Gibson
  • Bonggeun Kim

Abstract

Survey reports of zero expenditure result from either genuine non-consumption, or purchases undertaken too infrequently to observe during a survey, with hidden consumption from stocks. Infrequent purchase models rely on untested hypotheses to distinguish these types of zeros. We test such models with data from an unusual survey where food stocks are measured at the start and end of the survey reference period. Parameter estimates using these direct measures of hidden consumption out of stocks are compared with estimates from infrequent purchase models that attempt to recover this hidden consumption. The results suggest considerable bias when using the infrequent purchase models. Copyright 2012, Oxford University Press.

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  • John Gibson & Bonggeun Kim, 2012. "Testing the Infrequent Purchases Model Using Direct Measurement of Hidden Consumption from Food Stocks," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(1), pages 257-270.
  • Handle: RePEc:oup:ajagec:v:94:y:2012:i:1:p:257-270
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    File URL: http://hdl.handle.net/10.1093/ajae/aar135
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    1. repec:eee:jfpoli:v:72:y:2017:i:c:p:132-145 is not listed on IDEAS
    2. Bardsley, Nicholas & Buechs, Milena, 2013. "Exploiting Zero-Inflated Consumption Data using Propensity Score Matching and the Infrequency of Purchase Model, with Application to Climate Change Policy," MPRA Paper 48727, University Library of Munich, Germany.
    3. Joachim De Weerdt & Kathleen Beegle & Jed Friedman & John Gibson, 2016. "The Challenge of Measuring Hunger through Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 64(4), pages 727-758.
    4. Leffler, Kristyn K. & Carpio, Carlos E. & Boonsaeng, Tullaya, 2012. "Temporal Aggregation and Treatment of Zero Dependent Variables in the Estimation of Food Demand using Cross-Sectional Data," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124913, Agricultural and Applied Economics Association.
    5. Boonsaeng, Tullaya & Carpio, Carlos E., 2015. "Data Collection Period and Food Demand System Estimation using Cross Sectional Data," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205576, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    6. De Weerdt, Joachim & Beegle, Kathleen & Friedman,, Jed & Gibson, John, 2014. "The challenge of measuring hunger," Policy Research Working Paper Series 6736, The World Bank.
    7. Richard J. Vyn & Getu Hailu, 2015. "Discount Usage and Price Discrimination for Pork Products in Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(4), pages 449-474, December.
    8. Buchs, Milena & Schnepf, Sylke V., 2013. "UK Households' Carbon Footprint: A Comparison of the Association between Household Characteristics and Emissions from Home Energy, Transport and Other Goods and Services," IZA Discussion Papers 7204, Institute for the Study of Labor (IZA).

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