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Conditional Demand And Endogeneity? A Case Study Of Demand For Juice Products

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  • Brown, Mark G.
  • Behr, Robert M.
  • Lee, Jonq-Ying

Abstract

The question of endogeneity of conditional expenditures, as well as prices, in conditional demand equations for justices is examined. Both conditional expenditures and prices were found to be uncorrelated with the conditional demand errors, based on Wu-Hausman tests. Conditional demand error variance/covariance estimates and corresponding Slutsky coefficient estimates were approximately proportional, as predicted by the theory of rational random behavior, further supporting independence of conditional expenditures and conditional errors for juice demands.

Suggested Citation

  • Brown, Mark G. & Behr, Robert M. & Lee, Jonq-Ying, 1994. "Conditional Demand And Endogeneity? A Case Study Of Demand For Juice Products," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(01), pages 1-12, July.
    • Handle: RePEc:ags:jlaare:31231
    DOI: 10.22004/ag.econ.31231
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    References listed on IDEAS

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    Cited by:

    1. Leffler, Kristyn K. & Carpio, Carlos E. & Boonsaeng, Tullaya, 2012. "Temporal Aggregation and Treatment of Zero Dependent Variables in the Estimation of Food Demand using Cross-Sectional Data," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124913, Agricultural and Applied Economics Association.
    2. Brown, Mark G., 2008. "Impact of Income on Price and Income Responses in the Differential Demand System," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(2), pages 1-16, August.
    3. 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.
    4. Brown, Mark G., 2006. "Impact of Income on Price and Income Responses in the Differential Demand System," Research papers 36836, Florida Department of Citrus.
    5. Mark G. Brown & Jonq-Ying Lee & Thomas H. Spreen, 1996. "The impact of generic advertising and the free rider problem: A look at the US orange juice market and imports," Agribusiness, John Wiley & Sons, Ltd., vol. 12(4), pages 309-316.
    6. Maynard, Leigh J. & Veeramani, Venkat N., 2003. "Price Sensitivities for U.S. Frozen Dairy Products," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 35(3), pages 1-11, December.
    7. Brown, Mark G. & Jauregui, Carlos E., 2011. "Conditional Demand System for Beverages," Research papers 104335, Florida Department of Citrus.
    8. Andrew Muhammad & S. Aaron Smith & Tun‐Hsiang Edward Yu, 2021. "COVID‐19 and cotton import demand in China," Agribusiness, John Wiley & Sons, Ltd., vol. 37(1), pages 3-24, January.
    9. Gao, Zhifeng & Yu, Xiaohua & Lee, Jonq-Ying, 2013. "Consumer demand for diet quality: evidence from the healthy eating index," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(3).
    10. Peterson, Everett B. & Cotterill, Ronald W., 1998. "Incorporating Flexible Demand Systems in Empirical Models of Market Power," Research Reports 25159, University of Connecticut, Food Marketing Policy Center.
    11. Xiao, Hui & Kinnucan, Henry W. & Kaiser, Harry M., 1998. "Advertising, Structural Change, and U.S. Non-Alcoholic Drink Demand," Research Bulletins 122688, Cornell University, Department of Applied Economics and Management.
    12. Kira Lancker & Julia Bronnmann, 2022. "Substitution Preferences for Fish in Senegal," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(4), pages 1015-1045, August.
    13. Brown, Mark G. & Lee, Jonq-Ying, 2007. "Impacts of Promotional Tactics in a Conditional Demand System for Beverages," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 25(2), pages 1-16.
    14. Brown, Mark G., 2009. "Preference Variable Impacts in Direct and Inverse Differential Demand Systems," Research papers 104331, Florida Department of Citrus.
    15. Brown, Mark G. & Lee, Jonq-Ying, 2000. "A Uniform Substitute Demand Model With Varying Coefficients," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(01), pages 1-10, April.
    16. Mark G. Brown & Jonq-Ying Lee, 2000. "A measurement of the quality of orange-juice consumption," Agribusiness, John Wiley & Sons, Ltd., vol. 16(3), pages 321-332.

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    Demand and Price Analysis;

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