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Own-price Elasticities (own-price + elasticity)
Selected AbstractsDemand for milk labels in Germany: organic milk, conventional brands, and retail labelsAGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 2 2008Astrid Jonas German milk brands have come under significant price pressure due to the introduction of retail labels at the lower price end and of organic milk as a premium product. This analysis provides elasticity estimates by milk types and analyzes sociodemographic determinants of demand. A censored system of German household demand for organic and conventional milk, further separated into retail-label and brand milk, is estimated using a two-step procedure on data from the 2000,2003 German GfK ConsumerScan Houshold Survey. Own-price elasticities of conventional milk are around unity, but the demand for organic milk is very price-elastic. Results suggest that the price of organic milk should be considered as an important marketing instrument. [JEL-Code: D12, Q11]. © 2008 Wiley Periodicals, Inc. [source] Measuring the effectiveness of U.S. rice export promotion programsAGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 2 2009Pimbucha Rusmevichientong Three issues are examined relating to U.S. rice export promotion. First, the responsiveness of U.S. rice export demand with respect to U.S. rice export promotion is measured to determine the quantity impacts of these programs. Second, the overall effectiveness of the programs is examined in terms of whether the benefits exceed the cost. Finally, the optimality of U.S. rice export promotion in terms of expenditure levels is investigated. A double logarithmic econometric export demand equation is estimated to compute the export promotion elasticity while controlling for other demand determinants such as own price, the export price of competing countries, incomes, and exchange rates. Average benefit,cost ratios are computed for U.S. rice export promotion based on a range of excess supply own-price elasticities to compute the effectiveness of the programs. Finally, a marginal simulation analysis is conducted to explore the optimality of the investment in rice export promotion. [JEL Codes: Q17, Q18, Q13]. © 2009 Wiley Periodicals, Inc. [source] Household vegetable demand in the Philippines: Is there an urban-rural divide?AGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 4 2007Maria Erlinda M. Mutuc A Nonlinear Quadratic Almost Ideal Demand System (NQAIDS) that accounts for censoring and endogeneity problems is used to assess the vegetable demand behavior of rural and urban households in the Philippines. Detailed household consumption data for a number of vegetable commodities are utilized in the analysis. The results show that most of the expenditure and own-price elasticities of the vegetables analyzed are near or larger than unitary in both rural and urban areas. For majority of the vegetable commodities examined, only the expenditure elasticity is significantly different between rural and urban households. On the other hand, own-price and cross-price elasticities of most vegetables do not significantly differ between rural and urban households. The disaggregate vegetable demand elasticities in this study, as well as the insights from the rural/urban comparisons, provide valuable information that can be utilized for the analysis and design of various food-related policies in the Philippines. [JEL Classification: R21; Q11] © 2007 Wiley Periodicals, Inc. Agribusiness 23: 511,527, 2007. [source] Estimating own and cross brand price elasticities, and price,cost margin ratios using store-level daily scanner dataAGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 4 2001Junko Kinoshita This article addresses three issues related to Japanese dairy demand analysis. First, an econometric fluid milk demand model is estimated using store-level daily scanner data to determine whether the own-price elasticities are significantly different from previous estimates based on aggregate market-level data. This is important because of the current debate among Japanese dairy industry leaders concerning whether fluid milk is price inelastic or elastic. Own-price elasticity differences between fresh and reconstituted milk products are also examined. Second, milk product cross-price elasticities are estimated to measure the degree, if any, of substitutability between fresh milk and reconstituted milk products. Because most previous studies have relied upon aggregate market-level data, there are no previous estimates of cross-price elasticities for fresh milk and reconstituted milk products. Finally, price,cost margin ratios are estimated for each commodity using a method that does not require cost data, but rather relies on assumptions regarding the degree of competition to derive the price,cost margin ratio [Econlit alphanumeric subject codes: Q110, Q130]. © 2001 John Wiley & Sons, Inc. [source] An error corrected almost ideal demand system for major cereals in KenyaAGRICULTURAL ECONOMICS, Issue 1 2010Jonathan M. Nzuma Error correction model; AIDS; Cereal consumption; Kenya Abstract Despite significant progress in theory and empirical methods, the analysis of food consumption patterns in developing countries, particularly those in Sub-Saharan Africa (SSA), has received very limited attention. An attempt is made in this article to estimate an Error Corrected Almost Ideal Demand System for four major cereals consumed in Kenya employing annual data from 1963 to 2005. This demand system performs well on both theoretical and empirical grounds. The symmetry and homogeneity conditions are supported by the data and the,Le Chatelier,principle holds. Empirically, all own-price elasticities are negative and significant at 5% level and irrespective of the time horizon, maize, wheat, rice, and sorghum may be considered as necessities in Kenya. While the expenditure elasticities of all four cereals are positive, they are inelastic both in the short run and in the long run. Finally, wheat and rice complement maize consumption in Kenya while sorghum acts as a substitute. Since cereal consumers have price and income inelastic responses, a combination of income and price-oriented policies could improve cereal consumption in Kenya. [source] Lithuania's food demand during economic transitionAGRICULTURAL ECONOMICS, Issue 1 2000Ferdaus Hossain Abstract The linear approximate version of the almost ideal demand system (LA-AIDS) model is estimated using data from the Lithuanian household budget survey (HBS) covering the period from July 1992 to December 1994. Price and real expenditure elasticities for 12 food groups were estimated based on the estimated coefficients of the model. Very little or nothing is known about the demand parameters of Lithuania and other former socialist countries, so the results are of intrinsic interest. Estimated expenditure elasticities were positive and statistically significant for all food groups, while all own-price elasticities were negative and statistically significant, except for that of eggs which was insignificant. Results suggest that Lithuanian household consumption did respond to price and real income changes during their transition to a market-oriented economy. [source] International Pricing in a Generalized Model of Ideal VarietyJOURNAL OF MONEY, CREDIT AND BANKING, Issue 2009DAVID HUMMELS Lancaster ideal variety; price to market We examine international markups and pricing in a generalized version of an "ideal variety" model. In this model, entry causes crowding in variety space, so that the marginal utility of new varieties falls as market size grows. Crowding is partially offset by income effects, as richer consumers will pay more for varieties closer matched to their ideal types. We show theoretically and confirm empirically that declining marginal utility of new varieties results in: a higher own-price elasticity of demand (and lower prices) in large countries and a lower own-price elasticity of demand (and higher prices) in rich countries. The model is also useful for generating facts from the literature regarding cross-country differences in the rate of variety expansion. [source] BENCHMARK TWO-GOOD UTILITY FUNCTIONS,THE MANCHESTER SCHOOL, Issue 1 2008Article first published online: 21 DEC 200, KRIS DE JAEGHER Benchmark two-good utility functions involving a good with zero income elasticity and unit income elasticity are familiar. In this paper we derive utility functions for the additional benchmark cases where one good has zero cross-price elasticity, unit own-price elasticity and zero own-price elasticity. It is shown how each of these utility functions arises from a simple graphical construction based on a single given indifference curve. Also, it is shown that possessors of such utility functions may be seen as thinking in a particular sense of their utility, and may be seen as using simple rules of thumb to determine their demand. [source] | ||||||||||