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Testing for Preference Change in Consumer Demand: An Indirectly Separable, Semiparametric Model

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  • Moschini, Giancarlo

Abstract

This paper deals with the hypothesis that preference changes may partly explain observed consumption patterns. A model is developed based on indirect weak separability. The kernel estimator of the regression function models the unknown shape of demand functions, and a parametric structure models _seasonality, dynamics, and preference change. This semiparametric specification is applied to U.S. meat demand. The results support the notion that changes in consumer preferences, due to consumers' awareness of the health hazards of cholesterol and saturated fat intake, may explain an increased consumption of white meat and a decreased consumption of red meat.

Suggested Citation

  • Moschini, Giancarlo, "undated". "Testing for Preference Change in Consumer Demand: An Indirectly Separable, Semiparametric Model," 1990 Annual meeting, August 5-8, Vancouver, Canada 271033, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea90:271033
    DOI: 10.22004/ag.econ.271033
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    1. Giancarlo Moschini & Karl D. Meilke, 1989. "Modeling the Pattern of Structural Change in U.S. Meat Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(2), pages 253-261.
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    3. Poray, Michael C. & Foster, Kenneth A. & Dorfman, Jeffrey H., 2000. "Measuring An Almost Ideal Demand System With Generalized Flexible Least Squares," 2000 Annual meeting, July 30-August 2, Tampa, FL 21796, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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