Microeconometric models of infrequently purchased goods: An application to household pork consumption

Shew Jiuan B. Su*, Steven T. Yen

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

The double-hurdle and infrequency-of-purchase models are generalized with the inverse hyperbolic sine transformation in the dependent variable. The resulting specifications feature more flexible parameterization and error distributions than the untransformed models. Using the 1987-88 Nationwide Food Consumption Survey data on household pork consumption, a nonnested test suggests that the IHS double-hurdle model provides better characterization of the data-generating process than the IHS infrequency-of-purchase model but the elasticities derived from these models are similar. Own-price effects on the probability and level of consumption are negative and significant, but the elasticities are small. Income and cross-price effects are not significant. Household age composition, education, gender of meal planner, and race are among the demographic variables that affect consumption.

Original languageEnglish
Pages (from-to)513-533
Number of pages21
JournalEmpirical Economics
Volume21
Issue number4
DOIs
Publication statusPublished - 1996
Externally publishedYes

Keywords

  • Double-hurdle model
  • Heteroskedasticity
  • Infrequency of purchase
  • Inverse hyperbolic sine
  • Nationwide Food Consumption Survey
  • Pork consumption

ASJC Scopus subject areas

  • Statistics and Probability
  • Mathematics (miscellaneous)
  • Social Sciences (miscellaneous)
  • Economics and Econometrics

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