A DOUBLE-HURDLE MODEL OF FOOD DEMAND WITH ENDOGENOUS UNIT VALUES

This study develops a unique double-hurdle model of demand for composite food commodities which endogenizes unit values. The model structure allows us to account for the inability to observe such values for non-purchasing households and simultaneously adjusts for quality demand effects reflected in these unit values. Application to Mexican household food expenditure data shows the importance of controlling for the quality of composite goods. We find that poultry and pork expenditures depend on both quantity demanded and quality desired.


Issue Date:
1999
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/21635
Total Pages:
14
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-08-24

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