The Demand for Organic, Integrated-Agriculture, and Conventional Fresh Vegetables: A Censored Inverse Almost Ideal Demand System
The Inverse Almost Ideal Demand System is employed for the empirical analysis of the demand for organic, integrated-agriculture, and conventional fresh vegetables, using a cross section data surveyed in Rethymno, Greece during the 2005-06 period. The demand system is estimated by employing the Amemiya-Tobin model by Wales and Woodland for the estimation of censored equation systems, which ensures that the adding-up restriction is satisfied for both the latent and the observed expenditure shares. The problem regarding the logarithm of quantities when zero purchases are reported, is resolved in a theoretically consistent way that allows full-sample estimation and yields unbiased parameter estimates. The empirical results suggest that integrated-agriculture fresh vegetables are luxury goods, whereas the cross-quantity uncompensated flexibilities indicate that consumers are not regular buyers of any of the three types of fresh vegetables. Both groups of consumers who currently buy integrated-agriculture vegetables and those who buy conventional vegetables can be easily induced to buy organic vegetables.
|Date of creation:||01 Oct 2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +30 831 77405
Fax: +30 831 77406
Web page: http://economics.soc.uoc.gr/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cornes,Richard, 1992. "Duality and Modern Economics," Cambridge Books, Cambridge University Press, number 9780521336017.
- Boland, Michael A. & Schroeder, Ted C., 2002. "Marginal Value Of Quality Attributes For Natural And Organic Beef," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(01), April.
- Amemiya, Takeshi, 1974. "Multivariate Regression and Simultaneous Equation Models when the Dependent Variables Are Truncated Normal," Econometrica, Econometric Society, vol. 42(6), pages 999-1012, November.
- Robert H. Beach & Matthew T. Holt, 2001.
"Incorporating Quadratic Scale Curves in Inverse Demand Systems,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 83(1), pages 230-245.
- Beach, Robert H. & Holt, Matthew T., 1999. "Incorporating Quadratic Scale Curves In Inverse Demand Systems," 1999 Annual meeting, August 8-11, Nashville, TN 21579, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- repec:jaa:jagape:v:34:y:2002:i:1:p:39-49 is not listed on IDEAS
- Brown, Mark G & Lee, Jonq-Ying & Seale, James L, Jr, 1995. "A Family of Inverse Demand Systems and Choice of Functional Form," Empirical Economics, Springer, vol. 20(3), pages 519-30.
- George E. Battese, 1997. "A Note On The Estimation Of Cobb-Douglas Production Functions When Some Explanatory Variables Have Zero Values," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1-3), pages 250-252.
- Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
- Michael Burton & Dan Rigby & Trevor Young, 1999. "Analysis of the Determinants of Adoption of Organic Horticultural Techniques in the UK," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(1), pages 47-63.
- George E. Battese & Sohail J. Malik & Manzoor A. Gill, 1996. "An Investigation Of Technical Inefficiencies Of Production Of Wheat Farmers In Four Districts Of Pakistan," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1-4), pages 37-49.
- Barten, A. P. & Bettendorf, L. J., 1989. "Price formation of fish : An application of an inverse demand system," European Economic Review, Elsevier, vol. 33(8), pages 1509-1525, October.
When requesting a correction, please mention this item's handle: RePEc:crt:wpaper:0618. 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: (Kostis Pigounakis)
If references are entirely missing, you can add them using this form.