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Modeling Fresh Organic Produce Consumption: A Generalized Double-Hurdle Model Approach

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  • Zhang, Feng
  • Huang, Chung L.
  • Lin, Biing-Hwan

Abstract

Using actual retail data, this study is intended to profile consumers' social economic characteristics related to the growth of the fresh organic produce market with a generalized double-hurdle model. The nested test shows that the above model performs significantly better than Cragg's independent double-hurdle model and Tobit model.

Suggested Citation

  • Zhang, Feng & Huang, Chung L. & Lin, Biing-Hwan, 2006. "Modeling Fresh Organic Produce Consumption: A Generalized Double-Hurdle Model Approach," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35435, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saeaso:35435
    DOI: 10.22004/ag.econ.35435
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    File URL: https://ageconsearch.umn.edu/record/35435/files/sp06zh02.pdf
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    References listed on IDEAS

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    2. Carol Newman & Maeve Henchion & Alan Matthews, 2003. "A double-hurdle model of Irish household expenditure on prepared meals," Applied Economics, Taylor & Francis Journals, vol. 35(9), pages 1053-1061.
    3. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492, National Bureau of Economic Research, Inc.
    4. Jones, Andrew M, 1992. "A Note on Computation of the Double-Hurdle Model with Dependence with an Application to Tobacco Expenditure," Bulletin of Economic Research, Wiley Blackwell, vol. 44(1), pages 67-74, January.
    5. Steven T. Yen & Andrew M. Jones, 1997. "Household Consumption of Cheese: An Inverse Hyperbolic Sine Double-Hurdle Model with Dependent Errors," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 246-251.
    6. Gary D. Thompson, 1998. "Consumer Demand for Organic Foods: What We Know and What We Need to Know," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1113-1118.
    7. Jones, Andrew M, 1989. "A Double-Hurdle Model of Cigarette Consumption," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(1), pages 23-39, Jan.-Mar..
    8. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
    9. Lin, Tsai-Fen & Schmidt, Peter, 1984. "A Test of the Tobit Specification against an Alternative Suggested by Cragg," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 174-177, February.
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