Estimating censored food demand in Mexico with quaidsce

This study applies Stata’s quaidsce quaidsce quaidsce quaidsce command to estimate a censored demand system for food consumption in Mexican households using data from the 2022 National Survey of Household Income and Expenditures. The high prevalence of zero expenditures across food groups presents a challenge for traditional demand estimation methods. quaidsce quaidsce quaidsce quaidsce implements a two-step procedure that corrects selection bias, ensuring more accurate estimates of price and income elasticities. Our findings demonstrate that failing to account for censoring leads to systematic biases in elasticity estimates, with distortions increasing as the proportion of censored observations grows. By efficiently handling censored dependent variables, quaidsce quaidsce quaidsce quaidsce enhances the reliability of demand system estimation, making it a valuable tool for researchers working with consumption and expenditure data.