IDEAS home Printed from https://ideas.repec.org/p/ags/aaea99/21679.html
   My bibliography  Save this paper

Fragility In Dairy Product Demand Analysis

Author

Listed:
  • Maynard, Leigh J.
  • Liu, Deyu

Abstract

Several reasons justify the expectation of increasingly price elastic demand for dairy products. Using weekly scanner data, we find support for this hypotheses, but with wide variation in elasticity estimates across model specifications. The results demonstrate the need for more routine specification testing before basing recommendations on potentially fragile inferences.

Suggested Citation

  • Maynard, Leigh J. & Liu, Deyu, 1999. "Fragility In Dairy Product Demand Analysis," 1999 Annual meeting, August 8-11, Nashville, TN 21679, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea99:21679
    DOI: 10.22004/ag.econ.21679
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/21679/files/sp99ma02.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.21679?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. Giancarlo Moschini, 1995. "Units of Measurement and the Stone Index in Demand System Estimation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(1), pages 63-68.
    2. McGuirk, Anya M. & Driscoll, Paul J. & Alwang, Jeffrey Roger & Huang, Huilin, 1995. "System Misspecification Testing And Structural Change In The Demand For Meats," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(01), pages 1-21, July.
    3. Donald J. Liu & Olan D. Forker, 1988. "Generic Fluid Milk Advertising, Demand Expansion, and Supply Response: The Case of New York City," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(2), pages 229-236.
    4. Alston, Julian M & Foster, Kenneth A & Green, Richard D, 1994. "Estimating Elasticities with the Linear Approximate Almost Ideal Demand System: Some Monte Carlo Results," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 351-356, May.
    5. Green, Geoffrey M. & Park, John L., 1998. "Retail Demand For Whole Vs. Low-Fat Milk: New Perspectives On Loss Leader Pricing," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20827, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Alston, Julian M. & Chalfant, James A., 1991. "Can We Take The Con Out Of Meat Demand Studies?," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(01), pages 1-13, July.
    7. Maynard, Leigh J., 2000. "Empirical Tests Of The Argument That Consumers Value Stable Retail Milk Prices," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 18(2), pages 1-18.
    8. Boehm, William T., 1975. "The Household Demand For Major Dairy Products In The Southern Region," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 7(2), pages 1-10, December.
    9. Adolf Buse, 1994. "Evaluating the Linearized Almost Ideal Demand System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 781-793.
    10. Brown, Mark G. & Lee, Jonq-Ying & Seale, James L., Jr., 1994. "Demand Relationships Among Juice Beverages: A Differential Demand System Approach," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(2), pages 1-13, December.
    11. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    12. Boehm, William T., 1975. "The Household Demand for Major Dairy Products in the Southern Region," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 7(2), pages 187-196, December.
    13. Dale M. Heien & Cathy Roheim Wessells, 1988. "The Demand for Dairy Products: Structure, Prediction, and Decomposition," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(2), pages 219-228.
    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. Stockton, Matthew C. & Capps, Oral, Jr., 2005. "Demand System Analysis With Emphasis On Container Sizes Of Non-Alcoholic Beverages," 2005 Annual meeting, July 24-27, Providence, RI 19137, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Maynard, Leigh J., 2000. "Empirical Tests Of The Argument That Consumers Value Stable Retail Milk Prices," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 18(2), pages 1-18.
    3. Maynard, Leigh J., 2000. "Sources Of Irreversible Consumer Demand In U.S. Dairy Products," 2000 Annual meeting, July 30-August 2, Tampa, FL 21876, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. 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.
    5. Valeria Traversi & Roberto Ruggieri, 2013. "L?Enterprise Architecture e la gestione del patrimonio informativo aziendale," ECONOMIA E DIRITTO DEL TERZIARIO, FrancoAngeli Editore, vol. 2013(1), pages 49-63.
    6. Stockton, Matthew C., 2005. "A Demand System Analysis With Emphasis On Container Size Of Fluid Milk," A.E. Research Series 305036, University of Idaho, Department of Agricultural Economics and Rural Sociology.
    7. 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.
    8. 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).
    9. Huang, Min-Hsin & Hahn, David E. & Jones, Eugene, 2003. "A Socioeconomic Approach To Assessing Price Competition Between Private Labels And National Brands: The Case Of Shredded Cheese," 2003 Annual meeting, July 27-30, Montreal, Canada 21993, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Stockton, Matthew C. & Capps, Oral Jr., 2005. "Nerlovian Hedonic Models For Three Different Container Sizes Of Fluid Milk," A.E. Research Series 305038, University of Idaho, Department of Agricultural Economics and Rural Sociology.
    11. 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(01), pages 1-26, February.
    12. Huang, Min-Hsin & Hahn, David E. & Jones, Eugene, 2004. "Determinants Of Price Elasticities For Store Brands And National Brands Of Cheese," 2004 Annual meeting, August 1-4, Denver, CO 20235, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Goksel Armagan & Cuma Akbay, 2008. "An econometric analysis of urban households' animal products consumption in Turkey," Applied Economics, Taylor & Francis Journals, vol. 40(15), pages 2029-2036.
    14. Capps, Jr., Oral J. & Gao, Long, 2023. "A Comparison of Demand System Models Peculiar to a Granular Array of Dairy Products," Journal of Food Distribution Research, Food Distribution Research Society, vol. 54(03), November.

    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. Maynard, Leigh J., 2000. "Empirical Tests Of The Argument That Consumers Value Stable Retail Milk Prices," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 18(2), pages 1-18.
    2. Wildner, Susanne, 2001. "Quantifizierung der Preis– und Ausgabenelastizitäten für Nahrungsmittel in Deutschland: Schätzung eines LA/AIDS," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 50(05), pages 1-11.
    3. Taniguchi, Kiyoshi & Chern, Wen S., 2000. "Income Elasticity Of Rice Demand In Japan And Its Implications: Cross-Sectional Data Analysis," 2000 Annual meeting, July 30-August 2, Tampa, FL 21755, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Denni Tommasi, 2016. "Household Responses to cash Transfers," Working Papers ECARES ECARES 2016-20, ULB -- Universite Libre de Bruxelles.
    5. Feng, Xudong & Chern, Wen S., 2000. "Demand For Healthy Food In The United States," 2000 Annual meeting, July 30-August 2, Tampa, FL 21857, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Zheng, Yuqing & Kaiser, Harry M., 2008. "Advertising and U.S. Nonalcoholic Beverage Demand," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 37(2), pages 1-13.
    7. Ken-ichi Mizobuchi & Hisashi Tanizaki, 2014. "On estimation of almost ideal demand system using moving blocks bootstrap and pairs bootstrap methods," Empirical Economics, Springer, vol. 47(4), pages 1221-1250, December.
    8. 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.
    9. 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(01), pages 1-26, February.
    10. repec:ebl:ecbull:v:3:y:2008:i:14:p:1-10 is not listed on IDEAS
    11. Manami Ogura, 2008. "The examination of the validity of the Divisia price index for the almost ideal demand system model: Some Monte Carlo results," Economics Bulletin, AccessEcon, vol. 3(14), pages 1-10.
    12. Tey, (John) Yeong-Sheng & Shamsudin, Mad Nasir & Mohamed, Zainalabidin & Abdullah, Amin Mahir & Radam, Alias, 2008. "Demand for meat products in Malaysia," MPRA Paper 15034, University Library of Munich, Germany.
    13. 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.
    14. James L. Seale & Mary A. Marchant & Alberto Basso, 2003. "Imports versus Domestic Production: A Demand System Analysis of the U.S. Red Wine Market," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(1), pages 187-202.
    15. John Curtis & Brian Stanley, 2016. "Analysing Residential Energy Demand: An Error Correction Demand System Approach for Ireland," The Economic and Social Review, Economic and Social Studies, vol. 47(2), pages 185-211.
    16. Vickner, Steven S. & Marks, Leonie A. & Kalaitzandonakes, Nicholas G., 2003. "Food Product Recalls, Agbiotech And Consumer Response: The Case Of Starlink," 2003 Annual meeting, July 27-30, Montreal, Canada 22050, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Hossain, Ferdaus & Jensen, Helen H., 2000. "Lithuania's food demand during economic transition," Agricultural Economics, Blackwell, vol. 23(1), pages 31-40, June.
    18. Asche, Frank & Guttormsen, Atle G. & Kristofersson, Dadi & Roheim, Cathy A., 2005. "Import Demand Estimation and the Generalized Composite Commodity Theorem," 2005 Annual meeting, July 24-27, Providence, RI 19432, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Hassan Daniel & Monier-Dilhan Sylvette & Orozco Valérie, 2011. "Measuring Consumers' Attachment to Geographical Indications," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 9(1), pages 1-30, June.
    20. Li, Gang & Song, Haiyan & Witt, Stephen F., 2006. "Time varying parameter and fixed parameter linear AIDS: An application to tourism demand forecasting," International Journal of Forecasting, Elsevier, vol. 22(1), pages 57-71.
    21. Yeboah, Godfred & Maynard, Leigh J., 2004. "The Impact Of Bse, Fmd, And U.S. Export Promotion Expenditures On Japanese Meat Demand," 2004 Annual meeting, August 1-4, Denver, CO 19978, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    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:aaea99:21679. 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/aaeaaea.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.