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Prices and Quality Effects in Cross‐Sectional Demand Analysis
Author(s) -
Cox Thomas L.,
Wohlgenant Michael K.
Publication year - 1986
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242137
Subject(s) - cross sectional data , quality (philosophy) , economics , econometrics , cross sectional study , estimation , consumption (sociology) , microeconomics , statistics , mathematics , social science , philosophy , management , epistemology , sociology
A conceptual clarification of the sources and meaning of cross‐sectional price variability is used to motivate a theoretical and econometric framework for the estimation of cross‐sectional demand functions. Quality effects are distinguished from supply‐related price variability to identify cross‐sectional demand for disaggregated food commodities. An empirical application using data from the 1977–78 Nationwide Food Consumption Survey indicates that parameter differences resulting from a failure to adjust cross‐sectional prices for quality effects are likely to be small for relatively homogenous, disaggregated food commodities.