IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v11y2004i8p523-527.html
   My bibliography  Save this article

Demand elasticities derived from consistent estimation of Heckman-type models

Author

Listed:
  • Panagiotis Lazaridis

Abstract

As proved lately, the use of the Inverse Mill's Ratio as a correction factor in the second step of Heckman-type models leads to inconsistent estimates. One area where this type of model has been extensively used is the applied food demand analysis. As a consequence the derived demand elasticities are no longer valid. In this paper the appropriate expressions for demand elasticities are derived and are applied to 23 food items using family budget survey data.

Suggested Citation

  • 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.
    • Handle: RePEc:taf:apeclt:v:11:y:2004:i:8:p:523-527
    DOI: 10.1080/1350485042000207234
    as

    Download full text from publisher

    File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/1350485042000207234&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1350485042000207234?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    References listed on IDEAS

    as
    1. Manrique, Justo & Jensen, Helen H., 1998. "Spanish Household Demand For Seafood Products," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20997, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Kellie Curry Raper & Maria Namakhoye Wanzala & Rodolfo Nayga, 2002. "Food expenditures and household demographic composition in the US: a demand systems approach," Applied Economics, Taylor & Francis Journals, vol. 34(8), pages 981-992.
    3. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    4. John L. Park & Rodney B. Holcomb & Kellie Curry Raper & Oral Capps, 1996. "A Demand Systems Analysis of Food Commodities by U.S. Households Segmented by Income," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 290-300.
    5. 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.
    6. Andersson, Mari & Senauer, Benjamin, 1994. "Non-Purchasing Households In Food Expenditure Surveys: An Analysis For Potatoes In Sweden," Staff Papers 13232, University of Minnesota, Department of Applied Economics.
    7. Han, Tong & Cramer, Gail L. & Wahl, Thomas I., 1997. "Rural Household Food Consumption in China: Evidence from the Rural Household Survey," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35797, Western Agricultural Economics Association.
    8. Heien, Dale & Wessells, Cathy Roheim, 1990. "Demand Systems Estimation with Microdata: A Censored Regression Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(3), pages 365-371, July.
    9. Atanu Saha & Oral Capps & Patrick Byrne, 1997. "Calculating marginal effects in dichotomous - continuous models," Applied Economics Letters, Taylor & Francis Journals, vol. 4(3), pages 181-185.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Vassilopoulos, Achilleas & Klonaris, Stathis & Drichoutis, Andreas C. & Lazaridis, Panagiotis, 2012. "Modeling quality demand with data from Household Budget Surveys: An application to meat and fish products in Greece," Economic Modelling, Elsevier, vol. 29(6), pages 2744-2750.
    2. Ole Boysen, 2016. "Food Demand Characteristics in Uganda: Estimation and Policy Relevance," South African Journal of Economics, Economic Society of South Africa, vol. 84(2), pages 260-293, June.
    3. Mikkel Barslund, 2011. "Censored Demand System Estimation with Endogenous Expenditures in clustered samples: an application to food demand in urban Mozambique," LICOS Discussion Papers 28011, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    4. Zhuo Chen & Steven Yen, 2005. "On bias correction in the multivariate sample-selection model," Applied Economics, Taylor & Francis Journals, vol. 37(21), pages 2459-2468.
    5. Juan Carlos Caro & Shu Wen Ng & Ricardo Bonilla & Jorge Tovar & Barry M Popkin, 2017. "Sugary drinks taxation, projected consumption and fiscal revenues in Colombia: Evidence from a QUAIDS model," PLOS ONE, Public Library of Science, vol. 12(12), pages 1-16, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhuo Chen & Steven Yen, 2005. "On bias correction in the multivariate sample-selection model," Applied Economics, Taylor & Francis Journals, vol. 37(21), pages 2459-2468.
    2. Berges, Miriam & Casellas, Karina, 2006. "Estimación de un sistema de demanda de alimentos: un análisis aplicado a hogares pobres y no pobres," Nülan. Deposited Documents 1053, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    3. Lanfranco, Bruno A. & Ames, Glenn C.W. & Huang, Chung L., 2001. "A Censored System Estimation Of Hispanic Household Food Consumption Patterns," Faculty Series 16720, University of Georgia, Department of Agricultural and Applied Economics.
    4. Thiele, Silke, 2008. "Elastizitäten der Nachfrage privater Haushalte nach Nahrungsmitteln – Schätzung eines AIDS auf Basis der Einkommens- und Verbrauchsstichprobe 2003," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 57(05), pages 1-11.
    5. Bakhshoodeh, M., 2010. "Impacts of world prices transmission to domestic rice markets in rural Iran," Food Policy, Elsevier, vol. 35(1), pages 12-19, February.
    6. Schmit, Todd M. & Chung, Chanjin & Dong, Diansheng & Kaiser, Harry M. & Gould, Brian W., 2000. "The Effect Of Generic Dairy Advertising On The Household Demand For Milk And Cheese," 2000 Annual meeting, July 30-August 2, Tampa, FL 21775, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Hongbo Liu & Kevin A. Parton & Zhang-Yue Zhou & Rod Cox, 2009. "At-home meat consumption in China: an empirical study ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(4), pages 485-501, October.
    8. Beznoska, Martin, 2014. "Estimating a consumer demand system of energy, mobility and leisure: A microdata approach for Germany," Discussion Papers 2014/8, Free University Berlin, School of Business & Economics.
    9. Víctor Iturra & Dusan Paredes, 2014. "Construction of a Spatial Housing Price Index by Estimating an Almost Ideal Demand System," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 105(3), pages 301-314, July.
    10. Shiptsova, Rimma & Goodwin, Harold L., Jr. & Holcomb, Rodney B., 2004. "Household Expenditure Patterns for Carbohydrate Sources in Russia," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(2), pages 1-12, August.
    11. Liu, Hongbo & Parton, Kevin A. & Zhou, Zhang-Yue & Cox, Rod, 2009. "At-home meat consumption in China: an empirical study," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(4), pages 1-17.
    12. Anurag Sharma & Katharina Hauck & Bruce Hollingsworth & Luigi Siciliani, 2014. "The Effects Of Taxing Sugar‐Sweetened Beverages Across Different Income Groups," Health Economics, John Wiley & Sons, Ltd., vol. 23(9), pages 1159-1184, September.
    13. Dey, Madan Mohan & Garcia, Yolanda T. & Kumar, Praduman & Piumsombun, Somying & Haque, Muhammad Sirajul & Li, Luping & Radam, Alias & Senaratne, Athula & Khiem, Nguyen Tri & Koeshendrajana, Sonny, 2008. "Demand for fish in Asia: a cross-country analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), pages 1-18.
    14. Femenia, Fabienne, 2019. "A Meta-Analysis of the Price and Income Elasticities of Food Demand," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 68(2), June.
    15. Elsner, Karin, 1999. "Analysing Russian Food Expenditure Using Micro-Data," IAMO Discussion Papers 14909, Institute of Agricultural Development in Transition Economies (IAMO).
    16. Thiele, Silke, 2001. "Ausgaben- und Preiselastizitäten der Nahrungsmittelnachfrage auf Basis von Querschnittsdaten: Eine Systemschätzung für die Bundesrepublik Deutschland," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 50(02), pages 1-8.
    17. 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.
    18. Okrent, Abigail M. & Alston, Julian M., 2011. "Demand for Food in the United States: A Review of Literature, Evaluation of Previous Estimates, and Presentation of New Estimates of Demand," Monographs, University of California, Davis, Giannini Foundation, number 251908, December.
    19. Renner, Sebastian & Lay, Jann & Schleicher, Michael, 2017. "The Effects of Energy Price Changes: Heterogeneous Welfare Impacts, Energy Poverty, and CO2 Emissions in Indonesia," GIGA Working Papers 302, GIGA German Institute of Global and Area Studies.
    20. Ecker, Olivier & Qaim, Matin, 2011. "Analyzing Nutritional Impacts of Policies: An Empirical Study for Malawi," World Development, Elsevier, vol. 39(3), pages 412-428, March.

    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:taf:apeclt:v:11:y:2004:i:8:p:523-527. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    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.