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A DOUBLE-HURDLE MODEL OF FOOD DEMAND WITH ENDOGENOUS UNIT VALUES AgEcon
Dong, Diansheng; Gould, Brian W..
This study develops a unique double-hurdle model of demand for composite food commodities which endogenizes unit values. The model structure allows us to account for the inability to observe such values for non-purchasing households and simultaneously adjusts for quality demand effects reflected in these unit values. Application to Mexican household food expenditure data shows the importance of controlling for the quality of composite goods. We find that poultry and pork expenditures depend on both quantity demanded and quality desired.
Tipo: Conference Paper or Presentation Palavras-chave: Double-hurdle; Unit value; Household survey data; Composite commodity; Food demand; Quality effects; Consumer/Household Economics; Demand and Price Analysis.
Ano: 1999 URL: http://purl.umn.edu/21635
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A NOTE ON ELASTICITY ESTIMATION OF CENSORED DEMAND AgEcon
Dong, Diansheng; Kaiser, Harry M..
Tipo: Technical Report Palavras-chave: Demand and Price Analysis.
Ano: 2003 URL: http://purl.umn.edu/122120
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ARE THE TOTAL DAILY COST OF FOOD AND DIET QUALITY RELATED: A RANDOM EFFECTS PANEL DATA ANALYSIS AgEcon
Carlson, Andrea; Dong, Diansheng; Lino, Mark.
There is a common perception that healthy food costs more than less healthy food. In this study we use a demand model for diet quality, rather than the quantity of food. Since in our data, total daily cost and diet quality are both calculated from the foods chosen, we account for the fact that cost is endogenous. We find that while total daily food cost is statistically significant in relation to diet quality, the degree of association is very small. Hence, it does not appear that cost alone prevents individuals in the United States from purchasing a healthy diet. Other factors such as food culture and environment, health behaviours, and demographics are more important. Our findings suggest that the choice to consume a healthy diet is very complicated.
Tipo: Conference Paper or Presentation Palavras-chave: Diet cost; Cost of food; Food culture; Diet quality; HEI-2005; Random effects model; Demand model; NHANES; MPED; CNPP Food Prices Database; Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; Health Economics and Policy; D12; C3.
Ano: 2010 URL: http://purl.umn.edu/116395
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Assessing U.S. Household Purchase Dynamics for Dietary Fiber AgEcon
Henry-Osorio, Miguel; Dong, Diansheng.
This study updates existing literature on consumer/household demand for fiber by examining household purchase dynamics for dietary fiber. It uses a dynamic Tobit model that allows past purchase occasions to affect current purchase decisions for fiber in a framework that captures simultaneously state dependence, unobserved households heterogeneity preferences, and serial correlation caused by a stationary first-order choice process. The model controls for the unobserved heterogeneity by adopting a Gaussian random effects specification. It also captures variations in prices over time and controls for left-censoring. The dynamic model is estimated using the Geweke-Hajivasssiliou-Keane recursive probability simulator and a unique dataset that contains detailed...
Tipo: Presentation Palavras-chave: Temporal dependence; Household choice dynamics; Habits; GHK recursive simulator; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; D10; Q11; C23; C61.
Ano: 2012 URL: http://purl.umn.edu/123954
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Can Low-Income Americans Afford a Healthy Diet? AgEcon
Golan, Elise H.; Stewart, Hayden; Kuchler, Fred; Dong, Diansheng.
Low-income households that receive maximum food assistance benefits usually can afford a healthy diet; others may have more difficulty.
Tipo: Article Palavras-chave: Food Consumption/Nutrition/Food Safety; Food Security and Poverty.
Ano: 2008 URL: http://purl.umn.edu/122581
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Coupon Redemption and Its Effect on Household Cheese Purchases AgEcon
Dong, Diansheng; Kaiser, Harry M..
By endogenizing unit value and coupon redemption, we estimate U.S. household cheese purchase, quality choice, and coupon redemption equations simultaneously. Zero purchases and missing values are taken into account in the model to correct for the selectivity bias. The correlations among the three equations are found to be significant. Empirical findings show that high quality choice significantly decreases cheese purchases, while cheese coupon usage significantly increases purchases. We find that higher income households select higher quality cheese, while larger households choose lower quality cheese. Frequent coupon redeemers are found to purchase lower quality cheese. For coupon redemption, we find that African American households redeem less while...
Tipo: Technical Report Palavras-chave: Consumer/Household Economics; Marketing.
Ano: 2003 URL: http://purl.umn.edu/122111
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ECONOMIC INCENTIVES FOR DIETARY IMPROVEMENT AMONG FOOD STAMP RECIPIENTS AgEcon
Lin, Biing-Hwan; Yen, Steven T.; Dong, Diansheng; Smallwood, David M..
Most Americans need to consume more fruits, vegetables, and dairy products. This need is particularly acute among low-income individuals. The objective of this study is to examine the cost effectiveness of two economic policies that use alternative policy levers available within the Supplemental Nutrition Assistance Program (formerly Food Stamp Program) to increase consumption of these under-consumed foods. Data from three nationally representative surveys are used to estimate demand elasticities, marginal propensity to spend on food out of food stamp benefits, and consumption amount of and spending on under-consumed foods among food stamp recipients. Results of the analyses suggest that a 10% price subsidy would curtail consumption deficiencies by 4–7% at...
Tipo: Conference Paper or Presentation Palavras-chave: CEX; SNAP; Price subsidy; NHANES; NFSPS; Vegetables; Milk; Fruits; Food stamps; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Health Economics and Policy; C34; D12; Q18.
Ano: 2009 URL: http://purl.umn.edu/53339
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Estimation of a Censored AIDS Model: A Simulated Amemiya-Tobin Approach AgEcon
Dong, Diansheng; Kaiser, Harry M..
Kuhn-Tucker approach and its dual have been proposed to the demand system estimation when there are non-negativity bindings. However, empirical researchers have been struggling two decades in applying this method into practice due to: (1) the difficulty in derivation of a coherent econometric model, and (2) the cumbersome evaluation of high order probability integrals needed in parameter estimation. In this paper, we avoid the above two issues by using the Amemiya-Tobin demand system approach and the simulation procedure to evaluate the probability integrals. An AIDS model is estimated and the elasticities are obtained that are impossible to achieve when using Kuhn-Tucker approach. The model is applied to an analysis of Canadian household food demand.
Tipo: Technical Report Palavras-chave: Amemiya-Tobin; Censored demand system; AIDS model; Probability simulation; Canadian household food demand; Demand and Price Analysis; Research Methods/ Statistical Methods; C34; D12.
Ano: 2003 URL: http://purl.umn.edu/122113
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ESTIMATION OF CENSORED LA/AIDS MODEL WITH ENDOGENOUS UNIT VALUES AgEcon
Dong, Diansheng; Kaiser, Harry M.; Myrland, Oystein.
In this study, we develop and estimate a censored LA/AIDS model using household-level purchase data. In addition to imposing non-negativitity constraints, we account for the endogeneity of unit value. We address the non-negativity issue using an Amemiya-Tobin approach, which imposes the adding-up condition on both observed and latent shares. We address the endogeneity of unit value by estimating share equations and unit value equations simultaneously. Given the need to evaluate high-order probability integrals, we use a simulated probability method in the model estimation. This model is applied to estimate and analyze a demand system featuring six fish and three meat commodities, using Norwegian household data.
Tipo: Technical Report Palavras-chave: Demand and Price Analysis; Research Methods/ Statistical Methods; C34; D12..
Ano: 2003 URL: http://purl.umn.edu/122119
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Estimation of Price Elasticities from Cross-Sectional Data AgEcon
Chung, Chanjin; Dong, Diansheng; Kaiser, Harry M.; Schmit, Todd M..
This study develops an empirical framework that can be used to estimate quality-adjusted price elasticities from cross-sectional data, which are theoretically consistent and comparable to elasticities from time-series data. The new approach shows the importance of properly adjusting for quality variation in demand analysis.
Tipo: Conference Paper or Presentation Palavras-chave: Demand and Price Analysis.
Ano: 2001 URL: http://purl.umn.edu/20517
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Fruit and Vegetable Consumption by Low-Income Americans: Would a Price Reduction Make a Difference? AgEcon
Dong, Diansheng; Lin, Biing-Hwan.
Americans’ diets, particularly those of low-income households, fall short of Government recommendations in the quantity of fruits and vegetables consumed. Some proposals suggest that a price subsidy for those products would encourage low-income Americans to consume more of them. This study estimated that a 10-percent subsidy would encourage low-income Americans to increase their consumption of fruits by 2.1-5.2 percent and vegetables by 2.1-4.9 percent. The annual cost of such a subsidy for low-income Americans would be about $310 million for fruits and $270 million for vegetables. And most would still not meet Federal dietary recommendations.
Tipo: Report Palavras-chave: Price subsidy; Demand elasticity; Food consumption; Fruits and vegetables; Low income; Homescan Data; Supplemental Nutrition Assistance Program (SNAP); National Health and Nutrition Examination Survey (NHANES); And MyPyramid; Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis.
Ano: 2009 URL: http://purl.umn.edu/55835
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Household Food Purchase Patterns: The Case of Vegetables AgEcon
Dong, Diansheng; Stewart, Hayden.
A household’s purchase pattern for food can be described along three dimensions: how much food is bought, what types of food are bought, and how often food is bought. We have proposed a model in which these three facets of purchase behavior are simultaneously determined. Among other things, our model allows us to ask whether a household’s frequency of purchase influences how much food is bought on any shopping occasion. This was not possible with past studies. We find that, in fact, the more time has elapsed between purchases, the greater the quantity of product a household will buy on its next shopping occasion.
Tipo: Conference Paper or Presentation Palavras-chave: Food Consumption/Nutrition/Food Safety.
Ano: 2008 URL: http://purl.umn.edu/6428
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HOUSEHOLD SIZE AND COMPOSITION IMPACTS ON MEAT DEMAND IN MEXICO: A CENSORED DEMAND SYSTEM APPROACH AgEcon
Gould, Brian W.; Lee, Yoonjung; Dong, Diansheng; Villarreal, Hector J..
The proposed paper adopts the censored demand system approach of Lee and Pitt (1986) to examine the structure of Mexican food demand. This approach uses the concept of virtual prices to explain specific purchase patterns. The contribution of our selected paper is the incorporation of the endogenous equivalence scale function proposed by Phlipps (1998) within this censored system. The contribution of this analysis is not only in terms of the use of an endogenous scaling function within a censored demand system, but we also will be use simulated maximum likelihood techniques which allows for the specification and estimation of significantly larger sized demand systems without the imposition of restrictive distributional assumptions on the equation error...
Tipo: Conference Paper or Presentation Palavras-chave: Demand and Price Analysis.
Ano: 2002 URL: http://purl.umn.edu/19722
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IDENTIFYING THE EFFECTS OF GENERIC ADVERTISING ON THE HOUSEHOLD DEMAND FOR FLUID MILK AND CHEESE: A TWO-STEP PANEL DATA APPROACH AgEcon
Schmit, Todd M.; Dong, Diansheng; Chung, Chanjin; Kaiser, Harry M.; Gould, Brian W..
A two-step model with sample selection is applied to panel data of U.S. households to estimate at-home demand for fluid milk and cheese, incorporating advertising expenditures. The model consistently accounts for sample-selection bias, unobserved household heterogeneity, and temporal correlation. Generic advertising programs for fluid milk and cheese were effective at increasing conditional purchase quantities, with very little effect on the probability of purchase. In contrast to aggregate studies, the long-run generic advertising elasticities for cheese were larger than for those of fluid milk. Advertising response varied considerably across sub-product classes, while branded advertising expenditures were largely insignificant.
Tipo: Journal Article Palavras-chave: Demand and Price Analysis; Marketing.
Ano: 2002 URL: http://purl.umn.edu/31088
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Identifying the Extensive and Intensive Effects of Generic Advertising on the Household Demand for Fluid Milk and Cheese AgEcon
Schmit, Todd M.; Chung, Chanjin; Dong, Diansheng; Kaiser, Harry M.; Gould, Brian W..
A two-step sample selection model is used to estimate household demand equations for fluid milk and cheese products incorporating national generic advertising. This approach allows us to disentangle the incidence of the advertising effect on the probability of purchase and changes in the level of consumption. Generic advertising for fluid milk had a predominantly intensive effect on athome fluid milk demand, implying that advertising was relatively more effective at increasing the consumption of current consumers. Conversely, the at-home cheese demand response to generic cheese advertising was almost exclusively extensive, with virtually the entire increase in quantity demanded due to an increase in the household’s probability of purchase.
Tipo: Working Paper Palavras-chave: Consumer/Household Economics; Marketing.
Ano: 2001 URL: http://purl.umn.edu/122642
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IMPACTS OF INCOME DISTRIBUTION ON MARKET DEMAND AgEcon
Dong, Diansheng; Capps, Oral, Jr..
This study develops a procedure to estimate income distribution effects on market demand. The proposed procedure contains two steps: estimation of the underlying income distribution and estimation of market demand. Empirical findings show that the income distribution effect is a significant factor in the demand for meat products.
Tipo: Conference Paper or Presentation Palavras-chave: Consumer/Household Economics; Demand and Price Analysis.
Ano: 1998 URL: http://purl.umn.edu/20996
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Investigating Coupon Effects on Household Interpurchase Behavior for Cheese AgEcon
Dong, Diansheng; Kaiser, Harry M..
In this study, a market segmentation approach is developed and applied to analyze U.S. household cheese purchases. The segmentation is based on household interpurchase time or the hazard rate of purchases. The hazard rate for a household belonging to a given segment is a function of household demographic and marketing-mix variables, and its baseline is assumed to follow a Weibull distribution. The model is flexible and is able to yield increasing, decreasing, or constant hazard rate functions. Four segments have been discovered in the U.S. household cheese purchase market. Two of the segments contain about 40% of the cheese purchase households, which are frequent buyers with an average interpurchase time of 2 weeks. These frequent cheese purchase...
Tipo: Conference Paper or Presentation Palavras-chave: Consumer/Household Economics.
Ano: 2006 URL: http://purl.umn.edu/21314
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Measuring the Impacts of Generic Fluid Milk and Dairy Marketing AgEcon
Kaiser, Harry M.; Dong, Diansheng.
While per capita fluid milk consumption has been declining for decades in the United States, generic fluid milk marketing activities sponsored by fluid milk processors and dairy farmers have helped mitigate some of this decline. We estimate that these marketing efforts have had a positive and statistically significant impact on per capita fluid milk consumption. Specifically, over the 11-year period 1995 through 2005, we estimate that a one-percent increase in generic fluid milk marketing expenditures resulted in a 0.051 percent increase in per capita fluid milk consumption when holding all other demand factors constant. What about the impact on total consumption of fluid milk? From 2001 through 2005, generic fluid milk marketing activities increased fluid...
Tipo: Technical Report Palavras-chave: Livestock Production/Industries; Marketing.
Ano: 2006 URL: http://purl.umn.edu/121581
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Modeling the Household Purchasing Process Using a Panel Data Tobit Model AgEcon
Dong, Diansheng; Schmit, Todd M.; Kaiser, Harry M..
A panel data Tobit model is developed to examine the household purchase process for a frequently purchased commodity. The proposed model accounts not only for censoring or sample selectivity, but also the temporal dependence of the purchasing process using household panel data. The flexible error structure in the model accounts for both state dependence and household heterogeneity. Empirical findings show that purchase habits of milk persist across households over time, and most of them come from the household heterogeneity in preferences. Results also show that advertising increases the purchase quantity and purchase frequency simultaneously.
Tipo: Technical Report Palavras-chave: Household purchase; Fluid milk; Advertising; Panel data; Tobit model; Probability simulation; Food Consumption/Nutrition/Food Safety.
Ano: 2003 URL: http://purl.umn.edu/122115
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Optimal Media Allocation of Generic Fluid Milk Advertising Expenditures: The Case of New York State AgEcon
Dong, Diansheng; Schmit, Todd M.; Kaiser, Harry M..
A fixed-effects panel data demand model for five New York State markets is estimated to determine the differential impacts of generic fluid milk advertising by media type. Empirical results indicate that among the four media outlets, television advertising has the largest impact on per capita demand, followed by radio, outdoor, and print. Based on the estimated media-specific elasticities, media reallocation of advertising expenditures suggests that milk sales could increase significantly. The results indicate that cooperative media plan strategies developed between the New York regional advertising program and the national advertising programs would achieve the greatest benefits.
Tipo: Journal Article Palavras-chave: Generic advertising; Milk; Optimal media allocation; Panel data; Marketing.
Ano: 2007 URL: http://purl.umn.edu/44701
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