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Consumer Demand For Butter, Margarine and Blends: The Role of Purchase and Household Characteristics
Author(s) -
Gould Brian W.
Publication year - 1997
Publication title -
canadian journal of agricultural economics/revue canadienne d'agroeconomie
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 37
eISSN - 1744-7976
pISSN - 0008-3976
DOI - 10.1111/j.1744-7976.1997.tb00207.x
Subject(s) - commodity , economics , quality (philosophy) , agricultural economics , consumer demand , econometric model , panel data , microeconomics , econometrics , philosophy , epistemology , market economy
A U.S. household panel is used to estimate a model of household purchases of butter, margarine and butter/margarine blends. The econometric model accounts for the discrete purchase decisions process and the censored nature of disaggregated commodity demand. Observed market prices are “quality” adjusted for the three commodities investigated based on household and purchase characteristics. Over 90% of the reaction to a price change is found to occur with respect to the decision whether or not to consume.