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An analysis of meat demand in Argentina using household survey data

Author

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  • Pace Guerrero, Ignacio
  • Berges, Miriam
  • Casellas, Karina

Abstract

This paper presents an empirical analysis of demand for meat using micro data from three household surveys conducted over the last two decades in Argentina. We present an estimation of a complete demand system for meat using a Quadratic AIDS model. Data of the three household surveys are used: 1996/97, 2004/05 and 2012/13. The Shonkwiler and Yen (1999) methodology is used to correct selection bias and endogeneity of the total expenditure is corrected using instrumental variables. Quality-adjusted prices were obtained following Cox and Wohlgenant methods (1986). Expenditure and price elasticities (compensated and uncompensated), for each period were obtained. We found that beef is the relatively most inelastic good with a higher elasticity observed in the last years. Poultry price elasticity decline 50% and the demand of pork has changed from relatively inelastic to elastic. Poultry appears as the main substitute for all types of meat.

Suggested Citation

  • Pace Guerrero, Ignacio & Berges, Miriam & Casellas, Karina, 2015. "An analysis of meat demand in Argentina using household survey data," Nülan. Deposited Documents 2316, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    • Handle: RePEc:nmp:nuland:2316
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    File URL: https://nulan.mdp.edu.ar/id/eprint/2316/1/pace.etal.2015.pdf
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    References listed on IDEAS

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    1. Lema, Daniel & Brescia, Víctor & Berges, Miriam & Casellas, Karina, 2007. "Econometric estimation of food demand elasticities from household surveys in Argentina, Bolivia and Paraguay," Nülan. Deposited Documents 1032, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    2. 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.
    3. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
    4. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
    5. Blundell, Richard & Pashardes, Panos & Weber, Guglielmo, 1993. "What Do We Learn About Consumer Demand Patterns from Micro Data?," American Economic Review, American Economic Association, vol. 83(3), pages 570-597, June.
    6. 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.
    7. Thomas L. Cox & Michael K. Wohlgenant, 1986. "Prices and Quality Effects in Cross-Sectional Demand Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(4), pages 908-919.
    8. Steven Yen & Kamhon Kan & Shew-Jiuan Su, 2002. "Household demand for fats and oils: two-step estimation of a censored demand system," Applied Economics, Taylor & Francis Journals, vol. 34(14), pages 1799-1806.
    9. 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.
    10. Wales, T J & Woodland, A D, 1980. "Sample Selectivity and the Estimation of Labor Supply Functions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(2), pages 437-468, June.
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    Cited by:

    1. Colella, F. & Guerrero, I.R. Pace, 2018. "Elasticity of Demand for Sweetened and Unsweetened Drinks: The Case of Argentinian Households," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277505, International Association of Agricultural Economists.

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