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A Box-Cox Double Hurdle Model

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  • Andrew Jones
  • Steven Yen

Abstract

The double‐hurdle model with dependence is extended by incorporating the Box–Cox transformation. The model nests a range of popular limited dependent variable models, including the Gaussian double‐hurdle, the generalized Tobit, and two‐part models. Estimates of US beef consumption suggest that the Box–Cox specification outperforms all other restrictive models. Price elasticities are small and similar to findings in the literature. Household age composition and demographic variables also play significant roles in determining beef consumption. Income and cross‐price elasticities are insignificant.
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  • Andrew Jones & Steven Yen, "undated". "A Box-Cox Double Hurdle Model," Discussion Papers 94/5, Department of Economics, University of York.
  • Handle: RePEc:yor:yorken:94/5
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    Cited by:

    1. R. Brau & M. Lippi Bruni & AM. Pinna, 2004. "Public vs private demand for covering long term care expenditures," Working Paper CRENoS 200408, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    2. Hua Wang & Walter Keithly & Rex Caffey, 2019. "Factors Influencing Landowners’ Decisions for Income-Generating Activities on Private Coastal Wetland in Louisiana," Resources, MDPI, vol. 8(2), pages 1-20, June.

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