Hostname: page-component-78c5997874-j824f Total loading time: 0 Render date: 2024-11-08T10:33:38.747Z Has data issue: false hasContentIssue false
  • English
  • Français

Modeling U.S. Butter Consumption with Zero Observations

Published online by Cambridge University Press:  15 September 2016

Steven T. Yen  and
Shew-Jiuan Su
Steven T. Yen
Affiliation:
Center for Agricultural and Rural Development, Iowa State University
Shew-Jiuan Su
Affiliation:
Department of Geography and Anthropology, Louisiana State University
Get access

Abstract

A heteroscedastic double-hurdle model is used to investigate household butter consumption in the United States. Results suggest that failure to incorporate heteroscedastic errors may lead to unreliable elasticity estimates. Decomposition of the effects of variables leads to insightful information and makes the double-hurdle model a more useful tool in micro demand analysis. Larger and higher-income households are more likely to consume butter than others and also consume more, but income elasticity is very small. Age, region, and seasonality are among the other significant determinants of household butter consumption.

Type
Articles
Information
Agricultural and Resource Economics Review , Volume 24 , Issue 1 , April 1995 , pp. 47 - 55
Copyright
Copyright © 1995 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Amemiya, T. Advanced Econometrics. Cambridge: Harvard University Press, 1985.Google Scholar
Arabmazar, A., and Schmidt, P. “Further Evidence on the Robustness of the Tobit Estimator to Heteroskedasticity.” Journal of Econometrics 17(November 1981): 253–58.Google Scholar
Atkinson, A.B., Gomulka, J., and Stem, N.H. “Household Expenditure on Tobacco 1970–1980: Evidence From the Family Expenditure Survery.” ESRC Programme on Taxation, Incentives, and the Distribution of Income, London School of Economics, Discussion Paper No. 60., 1984.Google Scholar
Blisard, W.N., and Blaylock, J.R. “Distinguishing Between Market Participation and Infrequency of Purchase Models of Butter Demand.” American Journal of Agricultural Economics 75(May 1993): 314–20.Google Scholar
Blundell, R.W., and Meghir, C. “Bivariate Alternatives to the Univariate Tobit Model.” Journal of Econometrics 33(January/February 1987): 179–200.Google Scholar
Cragg, J.G. “Some Statistical Models for Limited Dependent Variables with Applications to the Demand for Durable Goods.” Econometrica 39(September 1971): 829–44.Google Scholar
Deaton, A.S., and Irish, M. “A Statistical Model for Zero Expenditures in Household Budgets.” Journal of Public Economics 23(February/March 1984): 59–80.CrossRefGoogle Scholar
Goldfeld, S.M., Quandt, R.E., and Trotter, H.F. “Maximization by Quadratic Hill-Climbing.” Econometrica 34(July 1966): 541–51.Google Scholar
Greene, W.H. Econometric Analysis. New York: Macmillan, 1993.Google Scholar
Haines, P., Guilkey, D., and Popkin, B. “Modeling Food Consumption Decisions as A Two-Step Process.” American Journal of Agricultural Economics 70(August 1988): 543–52.Google Scholar
Maddala, G.S. Limited-dependent and Qualitative Variables in Econometrics. Cambridge: Cambridge University Press, 1983.Google Scholar
McDonald, J.F., and Moffitt, R.A. “The Uses of Tobit Analysis.” Review of Economics and Statistics 62(May 1980): 318–21.Google Scholar
Popkin, B.M., Guilkey, D.K., and Haines, P.S. “Food Consumption Changes of Adult Women Between 1977 and 1985.” American Journal of Agricultural Economics 71(November 1989): 949–59.Google Scholar
Reynolds, A. “Analyzing Fresh Vegetable Consumption From Household Survey Data.” Southern Journal of Agricultural Economics 22(December 1990): 31–38.Google Scholar
Rao, C.R. Linear Statistical Inference and Its Applications. New York: Wiley, 1973.Google Scholar
Tobin, J. “Estimation of Relationships for Limited Dependent Variables.” Econometrica 26(January 1958): 24–36.Google Scholar
U.S. Department of Commerce, Bureau of Labor Statistics. Consumer Expenditure Survey: Diary Survey. Documentation of Public-Use Tape. Washington, D.C., 1989.Google Scholar
U.S. Department of Commerce, Bureau of Labor Statistics. Consumer Expenditure Survey: Diary Survey. Documentation of Public-Use Tape. Washington, D.C., 1990.Google Scholar
Vuong, Q.H. “Likelihood Ratio Tests for Model Selection and Nonnested Hypotheses.” Econometrica 57(March 1989): 307–333.Google Scholar
Yen, S.T. “Working Wives and Food Away From Home: The Box-Cox Double Hurdle Model.” American Journal of Agricultural Economics 75(November 1993): 884–95.Google Scholar