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Quality versus quantity in Mexican household poultry and pork purchases

Author

Listed:
  • Diansheng Dong

    (Department of Agricultural, Resource, and Managerial Economics, 311 Warren Hall, Cornell University, Ithaca, NY 14850)

  • Brian W. Gould

    (Department of Agricultural and Applied Economics, 427 Lorch St., University of Wisconsin-Madison, Madison, WI 53706)

Abstract

How food demand responds to changes in income, prices and household characteristics is important from a policy perspective when attempting to improve the dietary status of a particular population. This study develops a unique double-hurdle model of demand for a composite food, which endogenizes the commodities unit value. The model structure allows us to account for the inability to observe such values for non-purchasing households while simultaneously adjusting for quality-based demand effects for purchasing households. Our application to Mexican household pork and poultry expenditures shows the importance of controlling for composite good quality. We find that for these two aggregate commodities, expenditures depend on both quantity demanded and quality desired. JEL Classification: C51, D12 © 2000 John Wiley & Sons, Inc.

Suggested Citation

  • Diansheng Dong & Brian W. Gould, 2000. "Quality versus quantity in Mexican household poultry and pork purchases," Agribusiness, John Wiley & Sons, Ltd., vol. 16(3), pages 333-355.
  • Handle: RePEc:wly:agribz:v:16:y:2000:i:3:p:333-355
    DOI: 10.1002/1520-6297(200022)16:3<333::AID-AGR6>3.0.CO;2-P
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    References listed on IDEAS

    as
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    7. H. S. Houthakker, 1952. "Compensated Changes in Quantities and Qualities Consumed," Review of Economic Studies, Oxford University Press, vol. 19(3), pages 155-164.
    8. James R. Blaylock & W. Noel Blisard, 1992. "U.S. Cigarette Consumption: The Case of Low-Income Women," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(3), pages 698-705.
    9. Diansheng Dong & J.S. Shonkwiler & Oral Capps, 1998. "Estimation of Demand Functions Using Cross-Sectional Household Data: The Problem Revisited," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 466-473.
    10. Wales, T J & Woodland, A D, 1980. "Sample Selectivity and the Estimation of Labor Supply Functions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(2), pages 437-468, June.
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    Citations

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    Cited by:

    1. Chanjin Chung & Diansheng Dong & Todd M. Schmit & Harry M. Kaiser & Brian W. Gould, 2005. "Estimation of price elasticities from cross-sectional data," Agribusiness, John Wiley & Sons, Ltd., vol. 21(4), pages 565-584.
    2. Dong, Diansheng & Gould, Brian W. & Kaiser, Harry M., 2002. "The Structure Of Food Demand In Mexico: An Application Of The Amemiya-Tobin Approach To The Estimation Of A Censored System," 2002 Annual meeting, July 28-31, Long Beach, CA 19830, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Gould, Brian W. & Dong, Diansheng, 2004. "Product Quality And The Demand For Food: The Case Of Urban China," 2004 Annual meeting, August 1-4, Denver, CO 20010, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Johan Lundberg & Sofia Lundberg, 2012. "Distributional Effects of Lower Food Prices in a Rich Country," Journal of Consumer Policy, Springer, vol. 35(3), pages 373-391, September.
    5. Todd, Jessica E. & Mancino, Lisa & Leibtag, Ephraim S. & Tripodo, Christina, 2010. "Methodology Behind Quarterly Food- at- Home Price Database," Technical Bulletins 184309, United States Department of Agriculture, Economic Research Service.
    6. Gould, Brian W. & Sabates, Ricardo, 2001. "The Structure Of Food Demand In Urban China: A Demand System Approach," 2001 Annual meeting, August 5-8, Chicago, IL 20778, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Lopez, Jose Antonio & Malaga, Jaime E. & Chidmi, Benaissa & Belasco, Eric J. & Surles, James, 2012. "Mexican Meat Demand at the Table Cut Level: Estimating a Censored Demand System in a Complex Survey," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(2), pages 1-27.
    8. Chanjin Chung, 2006. "Quality bias in price elasticity," Applied Economics Letters, Taylor & Francis Journals, vol. 13(4), pages 241-245.
    9. Jorge M. Agüero & Brian W. Gould, 2003. "Household Composition and Brazilian Food Purchases: An Expenditure System Approach," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 51(3), pages 323-345, November.
    10. Todd, Jessica E. & Mancino, Lisa & Leibtag, Ephraim S. & Tripodo, Christina, 2010. "Methodology Behind the Quarterly Food-at-Home Price Database," Technical Bulletins 97799, United States Department of Agriculture, Economic Research Service.
    11. Sabates, Ricardo & Gould, Brian W. & Villarreal, Hector J., 2001. "Household composition and food expenditures: a cross-country comparison," Food Policy, Elsevier, vol. 26(6), pages 571-586, December.
    12. Lopez, Jose Antonio, 2014. "Imputation Methods And Approaches:An Analysis Of Protein Sources In The Mexican Diet," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 2(2), pages 1-20, April.
    13. Lopez, Jose Antonio & Malaga, Jaime E., 2009. "Estimation of a Censored Demand System in Stratified Sampling: An Analysis of Mexican Meat Demand at the Table Cut Level," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46294, Southern Agricultural Economics Association.
    14. Gould, Brian W. & Lee, Yoonjung & Dong, Diansheng & Villarreal, Hector J., 2002. "Household Size And Composition Impacts On Meat Demand In Mexico: A Censored Demand System Approach," 2002 Annual meeting, July 28-31, Long Beach, CA 19722, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Dong, Diansheng & Chung, Chanjin & Kaiser, Harry M., 2001. "Panel Data Double-Hurdle Model: An Application To Dairy Advertising," 2001 Annual meeting, August 5-8, Chicago, IL 20502, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Diansheng Dong & Harry M. Kaiser, 2005. "Coupon Redemption and Its Effect on Household Cheese Purchases," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 689-702.
    17. Lopez, Jose Antonio & Malaga, Jaime E., 2009. "Forecast and Simulation Analysis of Mexican Meat Consumption at the Table Cut Level: Impacts on U.S. Exports," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 51986, Agricultural and Applied Economics Association.

    More about this item

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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