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The demand for value-added and convenience: A household production approach

Author

Listed:
  • Timothy J. Richards

    (Arizona State University)

  • X. M. Gao

    (AT&T, Jacksonville, Florida)

  • Paul M. Patterson

    (Arizona State University)

Abstract

Americans are consuming more complex carbohydrate-based foods. This study applies a household production model to investigate the role of US households' demand for value-added and convenience, both defined as nonmarket commodities, in complex carbohydrate consumption. Empirical estimates of a translog household production system using Nationwide Food Consumption Survey (NFCS) data from 1977-1978 and 1987-1988 provide estimates of these commodities' shadow values. The shadow values are used, in turn, to estimate demand functions for value-added and convenience. The results show highly significant and negative demand elasticities for both commodities, suggesting that this is a valuable tool for analyzing the structure of their demand. © 1998 John Wiley & Sons, Inc.

Suggested Citation

  • Timothy J. Richards & X. M. Gao & Paul M. Patterson, 1998. "The demand for value-added and convenience: A household production approach," Agribusiness, John Wiley & Sons, Ltd., vol. 14(5), pages 363-378.
    • Handle: RePEc:wly:agribz:v:14:y:1998:i:5:p:363-378
    DOI: 10.1002/(SICI)1520-6297(199809/10)14:5<363::AID-AGR3>3.0.CO;2-D
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    References listed on IDEAS

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    1. McCracken, Vicki A. & Marotz, Craig C., 1989. "Consumer Potato Demand," Journal of Food Distribution Research, Food Distribution Research Society, vol. 20(2), pages 1-12, September.
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    3. Oral Capps & John R. Tedford & Joseph Havlicek, 1985. "Household Demand for Convenience and Nonconvenience Foods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(4), pages 862-869.
    4. Eugene Jones & Ronald W. Ward, 1989. "Effectiveness of generic and brand advertising on fresh and processed potato products," Agribusiness, John Wiley & Sons, Ltd., vol. 5(5), pages 523-536.
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    Cited by:

    1. Shiptsova, Rimma & Goodwin, Harold L., Jr. & Holcomb, Rodney B., 2004. "Household Expenditure Patterns for Carbohydrate Sources in Russia," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(2), pages 1-12, August.
    2. Honda, Arisa & Nakajima, Shinsaku & Ohura, Yuji & Kikushima, Ryosuke & Kono, Yoshinobu, 2015. "Household Salads Consumption in Japan: An Application of the two-step Demand System," 2015 Conference, August 9-14, 2015, Milan, Italy 211739, International Association of Agricultural Economists.
    3. Craig E Landry & Travis A Smith, 2019. "Demand for Household Food Waste," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(1), pages 20-36, March.
    4. Richards, Timothy J. & Kagan, Albert & Gao, Xiaoming, 1997. "Factors Influencing Changes In Potato And Potato Substitute Demand," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(1), pages 1-15, April.
    5. Yu, Lingling & Hailu, Getu, 2010. "Household Demand for Convenience Chicken Meat Products in Canada," Consumer and Market Demand Network Papers 310299, University of Alberta, Department of Resource Economics and Environmental Sociology.
    6. Harris, James Michael, 2005. "Using Nielsen Homescan Data and Complex Design Techniques to Analyze Convenience Food Expenditures," 2005 Annual meeting, July 24-27, Providence, RI 19344, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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