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The demand for value-added and convenience: A household production approach

Listed author(s):
  • Timothy J. Richards

    (Arizona State University)

  • X. M. Gao

    (AT&T, Jacksonville, Florida)

  • Paul M. Patterson

    (Arizona State University)

Americans are consuming more complex carbohydrate-based foods. This study applies a household production model to investigate the role of US households' demand for value-added and convenience, both defined as nonmarket commodities, in complex carbohydrate consumption. Empirical estimates of a translog household production system using Nationwide Food Consumption Survey (NFCS) data from 1977-1978 and 1987-1988 provide estimates of these commodities' shadow values. The shadow values are used, in turn, to estimate demand functions for value-added and convenience. The results show highly significant and negative demand elasticities for both commodities, suggesting that this is a valuable tool for analyzing the structure of their demand. © 1998 John Wiley & Sons, Inc.

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Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

Volume (Year): 14 (1998)
Issue (Month): 5 ()
Pages: 363-378

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Handle: RePEc:wly:agribz:v:14:y:1998:i:5:p:363-378
DOI: 10.1002/(SICI)1520-6297(199809/10)14:5<363::AID-AGR3>3.0.CO;2-D
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  1. McCracken, Vicki A. & Marotz, Craig C., 1989. "Consumer Potato Demand," Journal of Food Distribution Research, Food Distribution Research Society, vol. 20(2), September.
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