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


  • 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.

Suggested Citation

  • Timothy J. Richards & X. M. Gao & Paul M. Patterson, 1998. "The demand for value-added and convenience: A household production approach," Agribusiness, John Wiley & Sons, Ltd., vol. 14(5), pages 363-378.
  • 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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    References listed on IDEAS

    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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    Cited by:

    1. Honda, Arisa & Nakajima, Shinsaku & Ohura, Yuji & Kikushima, Ryosuke & Kono, Yoshinobu, 2015. "Household Salads Consumption in Japan: An Application of the two-step Demand System," 2015 Conference, August 9-14, 2015, Milan, Italy 211739, International Association of Agricultural Economists.
    2. Harris, James Michael, 2005. "Using Nielsen Homescan Data and Complex Design Techniques to Analyze Convenience Food Expenditures," 2005 Annual meeting, July 24-27, Providence, RI 19344, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Richards, Timothy J. & Kagan, Albert & Gao, Xiaoming, 1997. "Factors Influencing Changes In Potato And Potato Substitute Demand," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(1), April.

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