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Japanese Consumer Demand for Dairy Products

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  • Campo, Isabelle Schluep
  • Beghin, John C.

Abstract

We econometrically estimate consumer demand for dairy products in Japan using time series data for 1960-2003. We identify economic, cultural, and demographic forces that have been influencing dairy consumption patterns. We use the Almost Ideal (AI) Demand System by Deaton and Muellbauer and its variant, the Semiflexible Almost Ideal (SAI) Demand System developed by Moschini to impose concavity locally by reducing the rank of the Hessian of the expenditure function. We estimate three specifications: a full system comprising of four dairy products (fluid milk, powder milk, cheese, and butter), and an allother-goods aggregate; a subsystem for food made of four dairy goods and an all-other-food aggregate; and a sub-system of the four dairy products. The minimum distance estimator is used to estimate the demand system. We find that expenditure responses are positive, except for butter demand; own-price responses are large in absolute value; and non-price factors are important determinants of Japanese dairy consumption.

Suggested Citation

  • Campo, Isabelle Schluep & Beghin, John C., 2006. "Japanese Consumer Demand for Dairy Products," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25285, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25285
    DOI: 10.22004/ag.econ.25285
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    References listed on IDEAS

    as
    1. Moschini, Giancarlo, 1998. "The semiflexible almost ideal demand system," European Economic Review, Elsevier, vol. 42(2), pages 349-364, February.
    2. Campo, Isabelle Schluep & Beghin, John C., 2005. "Dairy Food Consumption, Production, and Policy in Japan," Staff General Research Papers Archive 12406, Iowa State University, Department of Economics.
    3. Yasuhito Watanabe & Nobuhiro Suzuki & Harry M. Kaiser, 1999. "Predicting Japanese dairy consumption behavior using qualitative survey data," Agribusiness, John Wiley & Sons, Ltd., vol. 15(1), pages 71-79.
    4. repec:ags:aare05:139308 is not listed on IDEAS
    5. Dong, Fengxia, 2006. "The outlook for Asian dairy markets: The role of demographics, income, and prices," Food Policy, Elsevier, vol. 31(3), pages 260-271, June.
    6. Andreas P. Christou & Richard L. Kilmer & James A. Sterns & Shiferaw T. Feleke, 2005. "Derived demand for disaggregated cheese products imported into Japan," Agribusiness, John Wiley & Sons, Ltd., vol. 21(1), pages 1-16.
    7. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    Full references (including those not matched with items on IDEAS)

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