IDEAS home Printed from https://ideas.repec.org/a/ags/jlaare/31124.html
   My bibliography  Save this article

Cross-Sectional Estimation Of U.S. Demand For Beef Products: A Censored System Approach

Author

Listed:
  • Yen, Steven T.
  • Huang, Chung L.

Abstract

Demands for beef products are investigated using the U.S. Department of Agriculture's 1987-88 Nationwide Food Consumption Survey data. The censored translog demand system is estimated with full-information and simulated maximum-likelihood procedures. These procedures represent different approaches to evaluation of multiple probability integrals in the likelihood function, but produce very similar parameter and elasticity estimates. Findings suggest sociodemographic variables play important roles in the demand for beef, and that demand for different cuts of beef should be treated differently.

Suggested Citation

  • Yen, Steven T. & Huang, Chung L., 2002. "Cross-Sectional Estimation Of U.S. Demand For Beef Products: A Censored System Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(2), pages 1-15, December.
  • Handle: RePEc:ags:jlaare:31124
    DOI: 10.22004/ag.econ.31124
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/31124/files/27020320.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.31124?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Wales, T. J. & Woodland, A. D., 1983. "Estimation of consumer demand systems with binding non-negativity constraints," Journal of Econometrics, Elsevier, vol. 21(3), pages 263-285, April.
    2. X. M. Gao & Thomas Spreen, 1994. "A Microeconometric Analysis of the U.S. Meat Demand," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 42(3), pages 397-412, November.
    3. 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.
    4. Heien, Dale & Wessells, Cathy Roheim, 1990. "Demand Systems Estimation with Microdata: A Censored Regression Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(3), pages 365-371, July.
    5. Eric J. Wailes & Gail L. Cramer, 1997. "A Microeconometric Analysis of Consumer Taste Determination and Taste Change for Beef," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 573-582.
    6. Moschini, GianCarlo & Meilke, Karl D., 1984. "Parameter Stability And The U.S. Demand For Beef," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 9(2), pages 1-12, December.
    7. Wohlgenant, Michael K., 1985. "Estimating Cross Elasticities Of Demand For Beef," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 10(2), pages 1-8, December.
    8. Hajivassiliou, Vassilis A. & Ruud, Paul A., 1986. "Classical estimation methods for LDV models using simulation," Handbook of Econometrics, in: R. F. Engle & D. McFadden (ed.), Handbook of Econometrics, edition 1, volume 4, chapter 40, pages 2383-2441, Elsevier.
    9. Gould, Brian W., 1996. "Factors Affecting U.S. Demand For Reduced-Fat Fluid Milk," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(1), pages 1-14, July.
    10. Federico Perali & Jean-Paul Chavas, 2000. "Estimation of Censored Demand Equations from Large Cross-Section Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 1022-1037.
    11. McDonald, John F & Moffitt, Robert A, 1980. "The Uses of Tobit Analysis," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 318-321, May.
    12. Heien, Dale & Pompelli, Greg, 1988. "The Demand For Beef Products: Cross-Section Estimation Of Demographic And Economic Effects," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 13(1), pages 1-8, July.
    13. Ernst R. Berndt & Bronwyn H. Hall & Robert E. Hall & Jerry A. Hausman, 1974. "Estimation and Inference in Nonlinear Structural Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 3, number 4, pages 653-665, National Bureau of Economic Research, Inc.
    14. 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.
    15. Lee, Lung-Fei & Pitt, Mark M, 1986. "Microeconometric Demand Systems with Binding Nonnegativity Constraints: The Dual Approach," Econometrica, Econometric Society, vol. 54(5), pages 1237-1242, September.
    16. Jean-Paul Chavas, 1983. "Structural Change in the Demand for Meat," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(1), pages 148-153.
    17. Lee, Lung-Fei & Pitt, Mark M., 1987. "Microeconometric models of rationing, imperfect markets, and non-negativity constraints," Journal of Econometrics, Elsevier, vol. 36(1-2), pages 89-110.
    18. Alden C. Manchester, 1977. "Household Consumption Behavior: Understanding, Measurement, and Applications in Policy-Oriented Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(1), pages 149-154.
    19. Rodolfo M. Nayga, 1995. "Microdata Expenditure Analysis of Disaggregate Meat Products," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 17(3), pages 275-285.
    20. John L. Park & Rodney B. Holcomb & Kellie Curry Raper & Oral Capps, 1996. "A Demand Systems Analysis of Food Commodities by U.S. Households Segmented by Income," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 290-300.
    21. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Diansheng Dong & Christopher G. Davis & Hayden Stewart, 2015. "The quantity and variety of households’ meat purchases: A censored demand system approach," Agricultural Economics, International Association of Agricultural Economists, vol. 46(1), pages 99-112, January.
    2. Adélaïde Fadhuile & Stéphane Lemarié & Alain Pirotte, 2016. "Disaggregating the Demand for Pesticides: Does it Matter?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(2), pages 223-252, June.
    3. Jing Li & Edward C. Jaenicke & Tobenna D. Anekwe & Alessandro Bonanno, 2018. "Demand for ready‐to‐eat cereals with household‐level censored purchase data and nutrition label information: A distance metric approach," Agribusiness, John Wiley & Sons, Ltd., vol. 34(4), pages 687-713, October.
    4. Jeon, Younghyeon & Hoang, Hoa K. & Thompson, Wyatt & Abler, David & Miller, J. Isaac, 2022. "Revealing the fundamental parameters of a food demand system using estimated elasticities," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322182, Agricultural and Applied Economics Association.
    5. Helen Lee Siew Heng & Andrew Tan Khee Guan, 2007. "Examining Malaysian Household Expenditure Patterns on Food-Away-From-Home," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 4(1), pages 11-24, June.
    6. Widenhorn, Andreas & Salhofer, Klaus, 2014. "Using a Generalized Differenced Demand Model to Estimate Price and Expenditure Elasticities for Milk and Meat in Austria," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 63(02), pages 1-16, June.
    7. Boonyanam, Nararuk, 2020. "Agricultural economic zones in Thailand," Land Use Policy, Elsevier, vol. 99(C).
    8. Fezzi, Carlo & Bateman, Ian J., 2009. "Structural Agricultural Land Use Modelling," 2009 Conference, August 16-22, 2009, Beijing, China 51423, International Association of Agricultural Economists.
    9. Yen, Steven T. & Lin, Biing-Hwan & Harris, James Michael & Ballenger, Nicole, 2004. "Demand For Differentiated Vegetables," 2004 Annual meeting, August 1-4, Denver, CO 20059, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Lopez, Jose Antonio & Malaga, Jaime E. & Chidmi, Benaissa & Belasco, Eric J. & Surles, James, 2012. "Mexican Meat Demand at the Table Cut Level: Estimating a Censored Demand System in a Complex Survey," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(2), pages 1-27.
    11. Preckel, Paul V. & Eales, James S. & Lillywhite, Jay M., 2005. "Maintaining Parameter Invariance in Censored Micro-Level Data," 2005 Annual meeting, July 24-27, Providence, RI 19108, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Widenhorn, Andreas & Salhofer, Klaus, 2014. "Using a Generalized Differenced Demand Model to Estimate Price and Expenditure Elasticities for Milk and Meat in Austria," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 63(2).
    13. Lopez, Jose Antonio & Malaga, Jaime E., 2009. "Estimation of a Censored Demand System in Stratified Sampling: An Analysis of Mexican Meat Demand at the Table Cut Level," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46294, Southern Agricultural Economics Association.
    14. Lee Siew Heng, Helen & Tan Khee Guan, Andrew, 2007. "Examining Malaysian Household Expenditure Patterns on Food-Away-From-Home," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 4(1), pages 1-14, June.
    15. Astrid Jonas & Jutta Roosen, 2008. "Demand for milk labels in Germany: organic milk, conventional brands, and retail labels," Agribusiness, John Wiley & Sons, Ltd., vol. 24(2), pages 192-206.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Huang, Chung L. & Yen, Steven T., 2002. "Estimation Of A Demand System With Limited Dependent Variables," 2002 Annual meeting, July 28-31, Long Beach, CA 19592, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Gould, Brian W. & Yen, Steven T., 2002. "Food Demand In Mexico: A Quasi-Maximum Likelihood Approach," 2002 Annual meeting, July 28-31, Long Beach, CA 19667, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Davis, Christopher G. & Dong, Diansheng & Blayney, Donald P. & Yen, Steven T. & Stillman, Richard, 2012. "U.S. Fluid Milk Demand: A Disaggregated Approach," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(1), pages 1-26, February.
    4. Meyerhoefer, Chad D. & Ranney, Christine K. & Sahn, David E., 2003. "Consistent Estimation Of Longitudinal Censored Demand Systems: An Application To Transition Country Data," Working Papers 127252, Cornell University, Department of Applied Economics and Management.
    5. Fabiosa, Jacinto F. & Jensen, Helen H. & Yan, Dong, 2005. "Household Welfare Cost of the Indonesian Macroeconomic Crisis," 2005 Annual meeting, July 24-27, Providence, RI 19311, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Yen, Steven T. & Fang, Cheng & Su, Shew-Jiuan, 2004. "Household food demand in urban China: a censored system approach," Journal of Comparative Economics, Elsevier, vol. 32(3), pages 564-585, September.
    7. Zhuo Chen & Steven Yen, 2005. "On bias correction in the multivariate sample-selection model," Applied Economics, Taylor & Francis Journals, vol. 37(21), pages 2459-2468.
    8. Steven T. Yen & Biing-Hwan Lin, 2006. "A Sample Selection Approach to Censored Demand Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(3), pages 742-749.
    9. Davis, Christopher G. & Blayney, Donald P. & Dong, Diansheng & Yen, Steven T. & Johnson, Rachel J., 2011. "Will Changing Demographics Affect U.S. Cheese Demand?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(2), pages 1-15, May.
    10. Pofahl, Geoffrey M. & Capps, Oral, Jr. & Clauson, Annette L., 2005. "Demand for Non-Alcoholic Beverages: Evidence From The ACNielsen Home Scan Panel," 2005 Annual meeting, July 24-27, Providence, RI 19441, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Arndt, Channing, 1999. "Demand For Herbicide In Corn: An Entropy Approach Using Micro-Level Data," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-18, July.
    12. Thomas, Alban & Chakir, Raja, 2020. "Unintended consequences of environmental policies: the case of set-aside and agricultural intensification," TSE Working Papers 20-1066, Toulouse School of Economics (TSE).
    13. Vardges Hovhannisyan & Hayk Khachatryan, 2017. "Ornamental Plants in the United States: An Econometric Analysis of a Household‐Level Demand System," Agribusiness, John Wiley & Sons, Ltd., vol. 33(2), pages 226-241, April.
    14. Femenia, Fabienne, 2019. "A Meta-Analysis of the Price and Income Elasticities of Food Demand," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 68(2), June.
    15. Gould, Brian W. & Lee, Yoonjung & Dong, Diansheng & Villarreal, Hector J., 2002. "Household Size And Composition Impacts On Meat Demand In Mexico: A Censored Demand System Approach," 2002 Annual meeting, July 28-31, Long Beach, CA 19722, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Daniel J. Phaneuf & Catherine L. Kling & Joseph A. Herriges, 2000. "Estimation and Welfare Calculations in a Generalized Corner Solution Model with an Application to Recreation Demand," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 83-92, February.
    17. Ishdorj, Ariun & Jensen, Helen H., 2010. "Demand For Breakfast Cereals: Whole Grains Guidance And Food Choice," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116445, European Association of Agricultural Economists.
    18. Golan, Amos & LaFrance, Jeffrey T & Perloff, Jeffrey M. & Seabold, Skipper, 2017. "Estimating a Demand System with Choke Prices," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt4qt9q8vr, Department of Agricultural & Resource Economics, UC Berkeley.
    19. Okrent, Abigail M. & Alston, Julian M., 2011. "Demand for Food in the United States: A Review of Literature, Evaluation of Previous Estimates, and Presentation of New Estimates of Demand," Monographs, University of California, Davis, Giannini Foundation, number 251908, December.
    20. Davis, Christopher G. & Dong, Diansheng & Blayney, Donald P. & Owens, Ashley, 2010. "An Analysis of U.S. Household Dairy Demand," Technical Bulletins 184308, United States Department of Agriculture, Economic Research Service.

    More about this item

    Keywords

    Demand and Price Analysis;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jlaare:31124. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/waeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.