Tiffin, R and Arnoult, M (2008): Bayesian estimation of the infrequency of purchase model with an application to food demand in the UK.
Download (1MB) | Preview
A Bayesian method of estimating multivariate sample selection models is introduced and applied to the estimation of a demand system for food in the UK to account for censoring arising from infrequency of purchase. We show how it is possible to impose identifying restrictions on the sample selection equations and that, unlike a maximum likelihood framework, the imposition of adding up at both latent and observed levels is straightforward. We find that higher income households consume proportionately more meat and more fresh fruit and vegetables. Regional differences in fruit and vegetable consumption are marked with the highest levels of consumption in London and the South East. The presence of children in a household reduces levels of vegetable consumption. Households employed in the professional or managerial sectors have higher levels of fruit and vegetable consumption. Age has an influence on the consumption of fats and sugars, with consumption declining amongst older households and on the types of fruit and vegetables consumed with younger households preferring more ready meals and prepared fruit and vegetables.
|Item Type:||MPRA Paper|
|Original Title:||Bayesian estimation of the infrequency of purchase model with an application to food demand in the UK|
|Keywords:||Bayesian estimation; Demand system; Infrequency of purchase;|
|Subjects:||D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis
C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models; Multiple Variables > C34 - Truncated and Censored Models; Switching Regression Models
C - Mathematical and Quantitative Methods > C0 - General > C01 - Econometrics
|Depositing User:||R Tiffin|
|Date Deposited:||24. Nov 2009 00:55|
|Last Modified:||19. Feb 2013 08:43|
Amemiya, T. (1974). Multivariate regression and simultaneous equation models when dependent variables are truncated normal, Econometrica 42(6): 999-1012.
Blundell, R. & Meghir, C. (1987). Bivariate alternatives to the tobit-model, Journal of Econometrics 34(1-2): 179 200.
Cragg, J. (1971). Some statistical models for limited dependent variables with application to demand for durable goods, 39(5): 829 - 844.
Deaton, A. (1988). Quality, quantity and spatial variation of price, American Economic Review 78(3): 418-430.
Deaton, A. (1990). Price elasticities from survey data: Extensions and indonesian results, Journal of Econometrics 44: 281-309.
Dowler, E. (2003). Food and poverty, Development Policy Review 21(5-6): 569-580.
Drewnowski, A. (2004). Obesity and the food environment - dietary energy density and diet costs, American Journal of Preventive Medicine 27(3): 154 - 162.
Geweke, J. (2005). Contemporary Bayesian Econometrics and Statistics, Wiley,Hoboken, New Jersey.
Heckman, J. (1979). Sample selection bias as a specication error, Econometrica 47(1): 153-161.
Heien, D. & Wessells, C. (1990). Demand systems estimation with microdata - a censored regression approach, Journal Of Business And Economic Statistics 8(3): 365 - 371.
Phaneuf, D., Kling, C. & Herriges, J. (2000). Estimation and welfare calculations in a generalized corner solution model with an application to recreation demand, Review of Economics and Statistics 82(1): 83-92.
Pudney, S. (1989). Modelling Individual Choice: The Econometrics of Corners Kinks and Holes, Blackwell, Oxford.
Rubin, D. (1996). Multiple imputation after 18+ years, Journal of the American Statistical Association 91: 473-89.
Shonkwiler, J. & Yen, S. (1999). Two-step estimation of a censored system of equations, American Journal Of Agricultural Economics 81(4): 972 - 982.
Stewart, H. & Yen, S. (2004). Changing household characteristics and the away-from-home food market: a censored equation system approach, FOOD POLICY 29(6): 643 - 658.
Tanner, M. & Wong, W. (1987). The calculation of the posterior distribution by data augmentation (with discussion), Journal of the American Statistical Association 82: 528-550.
Tobin, J. (1958). Estimation of relationships for limited dependent variables, Econometrica 26: 24-36.
Wales, T. & Woodland, A. (1983). Estimation of consumer demand systems with binding non-negativity constraints, Journal Of Econometrics 21(3): 263 - 285.
Yen, S. (2005). A multivariate sample-selection model: Estimating cigarette and alcohol demands with zero observations, American Journal Of Agricultural Economics 87(2): 453 - 466.
Yen, S. & Lin, B. (2006). A sample selection approach to censored demand systems, American Journal of Agricultural Economics 88(3): 742 - 749.
Yen, S., Lin, B. & Smallwood, D. (2003). Quasi- and simulated-likelihood approaches to censored demand systems: Food consumption by food stamp recipients in the united states, American Journal of Agricultural Economics 85(2): 458 - 478.