A Semiparametric Approach to Analyzing Differentiated Agricultural Products

When consumers have heterogeneous perceptions about product quality, traditional parametric methods may not provide accurate marginal valuation estimates of a product’s characteristics. A quantile regression framework can be used to estimate valuations of product characteristics when quality perceptions are not homogeneous. Semiparametric quantile regressions provide identification and quantification of heterogeneous marginal valuation effects across a conditional price distribution. Using purchase price data from a bull auction, we show that there are nonconstant marginal valuations of bull carcass and growth traits. Improved understanding of product characteristic valuations across differentiated market segments can help producers develop more cost-effective management strategies.


Editor(s):
Marchant, Mary A.
Bosch, Darrell J.
Subject(s):
Issue Date:
2013-02
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/143640
Published in:
Journal of Agricultural and Applied Economics, Volume 45, Number 1
Page range:
79-94
Total Pages:
16
JEL Codes:
Q13; L15; C52; D49




 Record created 2017-04-01, last modified 2018-01-22

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)