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Household Size And Composition Impacts On Meat Demand In Mexico: A Censored Demand System Approach

Author

Listed:
  • Gould, Brian W.
  • Lee, Yoonjung
  • Dong, Diansheng
  • Villarreal, Hector J.
Abstract
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 terms. We use a Gibbs sampling techniques to evaluate higher order truncated distributions required to implement the Lee and Pitt (1986) model specification.

Suggested Citation

  • Gould, Brian W. & Lee, Yoonjung & Dong, Diansheng & Villarreal, Hector J., 2002. "Household Size And Composition Impacts On Meat Demand In Mexico: A Censored Demand System Approach," 2002 Annual meeting, July 28-31, Long Beach, CA 19722, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea02:19722
    DOI: 10.22004/ag.econ.19722
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    References listed on IDEAS

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    1. Daniel J. Phaneuf & Catherine L. Kling & Joseph A. Herriges, 2000. "Estimation and Welfare Calculations in a Generalized Corner Solution Model with an Application to Recreation Demand," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 83-92, February.
    2. Brian W. Gould & Thomas L. Cox & Federico Perali, 1991. "Demand for Food Fats and Oils: The Role of Demographic Variables and Government Donations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(1), pages 212-221.
    3. Giancarlo Moschini & Daniele Moro & Richard D. Green, 1994. "Maintaining and Testing Separability in Demand Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(1), pages 61-73.
    4. John R. Tedford & Oral Capps & Joseph Havlicek, 1986. "Adult Equivalent Scales Once More—A Developmental Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(2), pages 322-333.
    5. Wales, T. J. & Woodland, A. D., 1983. "Estimation of consumer demand systems with binding non-negativity constraints," Journal of Econometrics, Elsevier, vol. 21(3), pages 263-285, April.
    6. Chiang, Jeongwen & Lee, Lung-Fei, 1992. "Discrete/continuous models of consumer demand with binding nonnegativity constraints," Journal of Econometrics, Elsevier, vol. 54(1-3), pages 79-93.
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    Citations

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    Cited by:

    1. Lopez, Jose Antonio & Malaga, Jaime E. & Chidmi, Benaissa & Belasco, Eric J. & Surles, James, 2012. "Mexican Meat Demand at the Table Cut Level: Estimating a Censored Demand System in a Complex Survey," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(2), pages 1-27.
    2. Eimear Leahy & Seán Lyons & Richard S. J. Tol, 2011. "Determinants of Vegetarianism and Meat Consumption Frequency in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 42(4), pages 407-436.
    3. Fabiosa, Jacinto F. & Jensen, Helen H., 2003. "Usefulness of Incomplete Demand Model in Censored Demand System Estimation," 2003 Annual meeting, July 27-30, Montreal, Canada 21923, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Fabiosa, Jacinto F. & Jensen, Helen H. & Yan, Dong, 2005. "Household Welfare Cost of the Indonesian Macroeconomic Crisis," 2005 Annual meeting, July 24-27, Providence, RI 19311, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Lopez, Jose Antonio, 2014. "Imputation Methods And Approaches:An Analysis Of Protein Sources In The Mexican Diet," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 2(2), pages 1-20, April.
    6. Leahy, Eimear & Lyons, Seán & Tol, Richard S. J., 2010. "National Determinants of Vegetarianism," Papers WP341, Economic and Social Research Institute (ESRI).
    7. Lopez, Jose Antonio & Malaga, Jaime E., 2009. "Forecast and Simulation Analysis of Mexican Meat Consumption at the Table Cut Level: Impacts on U.S. Exports," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 51986, Agricultural and Applied Economics Association.

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