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Estimation of a Censored Demand System in Stratified Sampling: An Analysis of Mexican Meat Demand at the Table Cut Level

  • Lopez, Jose Antonio
  • Malaga, Jaime E.
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    Evidence of meat trade in the form of table cuts suggests that consumer preferences and tastes vary across meat cuts. Unlike previous studies, this paper estimates demand elasticities at the table cut level from a Mexican survey of household incomes and expenditures, which is a stratified sample. The study uses the two-step estimation of a censored demand system proposed by Shonkwiler and Yen (1999) but incorporates stratification variables into the estimation procedure. Parameter estimates are reported and its standard errors are approximated by using the bootstrap procedure.

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    File URL: http://purl.umn.edu/46294
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    Paper provided by Southern Agricultural Economics Association in its series 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia with number 46294.

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    Date of creation: Feb 2009
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    Handle: RePEc:ags:saeana:46294
    Contact details of provider: Web page: http://www.saea.org/

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    1. Dyck, John H. & Nelson, Kenneth E., 2003. "Structure Of The Global Markets For Meat," Agricultural Information Bulletins 33701, United States Department of Agriculture, Economic Research Service.
    2. Diansheng Dong & Brian W. Gould & Harry M. Kaiser, 2004. "Food Demand in Mexico: An Application of the Amemiya-Tobin Approach to the Estimation of a Censored Food System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 1094-1107.
    3. 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.
    4. Brian Gould & Hector Villarreal, 2002. "Adult equivalence scales and food expenditures: an application to Mexican beef and pork purchases," Applied Economics, Taylor & Francis Journals, vol. 34(9), pages 1075-1088.
    5. Erkan Erdil, 2006. "Demand systems for agricultural products in OECD countries," Applied Economics Letters, Taylor & Francis Journals, vol. 13(3), pages 163-169.
    6. Heien, Dale & Jarvis, Lovell S. & Perali, Federico, 1989. "Food consumption in Mexico : Demographic and economic effects," Food Policy, Elsevier, vol. 14(2), pages 167-179, May.
    7. Mykel R. Taylor, 2009. "Does Food Safety Information Affect Consumers' Decision to Purchase Mean and Poultry? Evidence from U.S. Household Level Data," Working Papers 2009-11, School of Economic Sciences, Washington State University.
    8. Heien, Dale & Wessells, Cathy Roheim, 1990. "Demand Systems Estimation with Microdata: A Censored Regression Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(3), pages 365-71, July.
    9. 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.
    10. Wooldridge, Jeffrey M., 2001. "Asymptotic Properties Of Weighted M-Estimators For Standard Stratified Samples," Econometric Theory, Cambridge University Press, vol. 17(02), pages 451-470, April.
    11. J. Scott Shonkwiler & Steven T. Yen, 1999. "Two-Step Estimation of a Censored System of Equations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 972-982.
    12. 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.
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