IDEAS home Printed from https://ideas.repec.org/p/ags/aaea90/271033.html
   My bibliography  Save this paper

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

Author

Listed:
  • 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, 1990. "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
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/271033/files/aaea-1990-128.pdf
    Download Restriction: no
    File URL: https://ageconsearch.umn.edu/record/271033/files/aaea-1990-128.pdf?subformat=pdfa
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Hirofumi Uzawa, 1962. "Production Functions with Constant Elasticities of Substitution," Review of Economic Studies, Oxford University Press, vol. 29(4), pages 291-299.
    2. Hong, Y & Pagan, Adrian, 1988. "Some Simulation Studies of Nonparametric Estimators," Empirical Economics, Springer, vol. 13(3/4), pages 251-266.
    3. 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.
    4. Varian, Hal R, 1982. "The Nonparametric Approach to Demand Analysis," Econometrica, Econometric Society, vol. 50(4), pages 945-973, July.
    5. Chalfant, James A & Alston, Julian M, 1988. "Accounting for Changes in Tastes," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 391-410, April.
    6. Walter N. Thurman, 1987. "The Poultry Market: Demand Stability and Industry Structure," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(1), pages 30-37.
    7. Robinson, Peter M, 1988. "Root- N-Consistent Semiparametric Regression," Econometrica, Econometric Society, vol. 56(4), pages 931-954, July.
    8. Basmann, R L & Molina, D J & Slottje, D J, 1983. "Budget Constraint Prices as Preference Changing Parameters of Generalized Fechner-Thurstone Direct Utility Functions," American Economic Review, American Economic Association, vol. 73(3), pages 411-413, June.
    9. Wohlgenant, Michael K., 1985. "Estimating Cross Elasticities Of Demand For Beef," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 10(2), pages 1-8, December.
    10. Aman Ullah, 1988. "Non-parametric Estimation of Econometric Functionals," Canadian Journal of Economics, Canadian Economics Association, vol. 21(3), pages 625-658, August.
    11. Jean-Paul Chavas, 1983. "Structural Change in the Demand for Meat," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(1), pages 148-153.
    12. Douglas W. Caves & Laurits R. Christensen & Joseph A. Herriges, 1987. "The Neoclassical Model of Consumer Demand with Identically Priced Commodities: An Application to Time-of-Use Electricity Pricing," RAND Journal of Economics, The RAND Corporation, vol. 18(4), pages 564-580, Winter.
    13. Charles Blackorby & R. Robert Russell, 1976. "Functional Structure and the Allen Partial Elasticities of Substitution: An Application of Duality Theory," Review of Economic Studies, Oxford University Press, vol. 43(2), pages 285-291.
    14. Dale W. Jorgenson & Lawrence J. Lau, 1975. "The Structure of Consumer Preferences," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 4, number 1, pages 49-101, National Bureau of Economic Research, Inc.
    15. Landsburg, Steven E, 1981. "Taste Change in the United Kingdom, 1900-1955," Journal of Political Economy, University of Chicago Press, vol. 89(1), pages 92-104, February.
    16. Caves, Douglas W. & Christensen, L. R. & Herriges, Joseph A., 1987. "Neoclassical Model of Consumer Demand with Identically Priced Commodities; And An Application to Time of Use Electricity Pricing," Staff General Research Papers Archive 10793, Iowa State University, Department of Economics.
    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. 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).
    2. Cai, Mingchao & Wang, Yongxiang & Wu, Weixing, 2007. "Investment under event risk in china stock market: A theoretical analysis," Economic Modelling, Elsevier, vol. 24(4), pages 673-682, July.

    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. Jin, Hyun Joung & Sun, Changyou & Koo, Won W., 2003. "The Effect Of Food-Safety Related Information On Consumer Preference: The Case Of The Bse Outbreak In Japan," Agribusiness & Applied Economics Report 23636, North Dakota State University, Department of Agribusiness and Applied Economics.
    2. Kesavan, Thulasiram, 1988. "Monte Carlo experiments of market demand theory," ISU General Staff Papers 198801010800009854, Iowa State University, Department of Economics.
    3. Hsu, Jane Lu, 2000. "Gradual Switching Structural Changes of Meat Consumption in Taiwan," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123663, Australian Agricultural and Resource Economics Society.
    4. Chen Zhen & Michael K. Wohlgenant, 2006. "Meat Demand under Rational Habit Persistence," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(4), pages 477-495, December.
    5. Rafael Cortez & Ben Senauer, 1996. "Taste Changes in the Demand for Food by Demographic Groups in the United States: A Nonparametric Empirical Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 280-289.
    6. Unknown, 1990. "Structural Change in Livestock: Causes, Implications, Alternatives," Research Institute on Livestock Pricing 232728, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.
    7. Schroeter, Christiane & Foster, Kenneth A., 2004. "The Impact Of Health Information And Demographic Changes On Aggregate Meat Demand," 2004 Annual meeting, August 1-4, Denver, CO 20130, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Chalfant, James A. & Eshel, Dafna M. Disegni, 2001. "A Nonparametric Test Of Advertising'S Effectiveness," 2001 Annual meeting, August 5-8, Chicago, IL 20529, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Eales, James & Veeman, Michele & Fulton, Joan, 1993. "Canadian Demand for Meats," Project Report Series 232377, University of Alberta, Department of Resource Economics and Environmental Sociology.
    10. Vardges Hovhannisyan & Brian W. Gould, 2014. "Structural change in urban Chinese food preferences," Agricultural Economics, International Association of Agricultural Economists, vol. 45(2), pages 159-166, March.
    11. Eales, James S. & Unnevehr, Laurian J., 1994. "The inverse almost ideal demand system," European Economic Review, Elsevier, vol. 38(1), pages 101-115, January.
    12. Frechette, Darren L. & Jin, Hyun-Joung, 2002. "Distinguishing transitory nonlinear shocks from permanent structural change," Structural Change and Economic Dynamics, Elsevier, vol. 13(2), pages 231-248, June.
    13. Ogura, Manami, 2011. "Testing for structural break in Japanese demand system after the bubble era," Structural Change and Economic Dynamics, Elsevier, vol. 22(3), pages 277-286, September.
    14. Steven D. Silver, 2016. "A QUAIDS Model of Need-Based Structure in U.S. Personal Consumption 2006–2012," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 44(3), pages 303-323, September.
    15. Barnett, William A. & Serletis, Apostolos, 2008. "Consumer preferences and demand systems," Journal of Econometrics, Elsevier, vol. 147(2), pages 210-224, December.
    16. Goodwin, Barry K., 1992. "Forecasting Cattle Prices in the Presence of Structural Change," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 24(2), pages 11-22, December.
    17. Herter, Karen & Wayland, Seth, 2010. "Residential response to critical-peak pricing of electricity: California evidence," Energy, Elsevier, vol. 35(4), pages 1561-1567.
    18. Hailu, Getu & Goddard, Ellen W., 2010. "The changing egg demand in Canada: do advertising and health message contents matter?," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116427, European Association of Agricultural Economists.
    19. Blow, Laura & Crawford, Ian, 2002. "A nonparametric method for valuing new goods," Working Paper Series 143, European Central Bank.
    20. Yadavalli, Anita & Jones, Keithly, 2014. "Does media influence consumer demand? The case of lean finely textured beef in the United States," Food Policy, Elsevier, vol. 49(P1), pages 219-227.

    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:ags:aaea90:271033. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/aaeaaea.html .

    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 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.