A Double-Hurdle Model Of Food Demand With Endogenous Unit Values
This study develops a unique double-hurdle model of demand for composite food commodities which endogenizes unit values. The model structure allows us to account for the inability to observe such values for non-purchasing households and simultaneously adjusts for quality demand effects reflected in these unit values. Application to Mexican household food expenditure data shows the importance of controlling for the quality of composite goods. We find that poultry and pork expenditures depend on both quantity demanded and quality desired.
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- Jones, Andrew M, 1989. "A Double-Hurdle Model of Cigarette Consumption," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(1), pages 23-39, Jan.-Mar..
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- 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.
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