Demand for beef in Malaysia: Quality or Quantity?
With Malaysian government plan to increase production of beef and open the beef market to more abattoirs from other countries, domestic beef market has become more challenging. The domestic beef market is postulated to be available in a variety of qualities in future. Consumers do not only make decisions on how much to purchase but also at what qualities. This study is to analyze consumer evaluation of quality and quantity on demand for beef in Malaysia. A demand model incorporated consumer socio-economic variables and another applied demand analysis incorporated quality variable are estimated via two-stage least squares. Beef demand elasticities are estimated in the first demand model and a quality elasticity of demand for beef is estimated in the second applied demand analysis. The models are applied to a cross-sectional data set from Household Expenditure Survey 2004/2005. The results indicate that beef demand is inelastic to meat expenditure and to its own price. On another side, the results also indicate that beef demand is inelastic to quality. The elasticities in this study suggest that consumers substitute quantity for quality in demand for beef in Malaysia.
|Date of creation:||23 May 2008|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Chalfant, James A & Alston, Julian M, 1988. "Accounting for Changes in Tastes," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 391-410, April.
- Capps, Oral, Jr. & Schmitz, John D., 1991. "A Recognition Of Health And Nutrition Factors In Food Demand Analysis," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(01), July.
- L. Wade, 1988. "Review," Public Choice, Springer, vol. 58(1), pages 99-100, July.
- Jeffrey T. LaFrance, 1986.
"The Structure of Constant Elasticity Demand Models,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 68(3), pages 543-552.
- Jeffrey T. LaFrance, 1986. "The Structure of Constant Elasticity Demand Models," Monash Economics Working Papers archive-28, Monash University, Department of Economics.
- V. James Rhodes & Elmer R. Kiehl, 1956. "On Consumer Grades for Foods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 38(1), pages 44-61.
- H. S. Houthakker, 1952. "Compensated Changes in Quantities and Qualities Consumed," Review of Economic Studies, Oxford University Press, vol. 19(3), pages 155-164.
- Unnevehr, Laurian J. & Bard, Sharon K., 1993. "Beef Quality: Will Consumers Pay For Less Fat?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(02), December.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:15035. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.