Prices and Quality Effects in Cross‐Sectional Demand Analysis

Cox, Thomas L.; Wohlgenant, Michael K.

doi:10.2307/1242137

Cited by 335 publications

(218 citation statements)

References 23 publications

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“…Output inefficiency was mainly due to low yields, implying that a major effort has to be undertaken to increase yield levels and/or postharvest facilities that help to conserve yield (Weinberger and Lumpkin 2007). The input inefficiency demonstrated that the observed variable inputs (seed and fertilizers) were not used at the optimal level showing that access to good quality seeds and fertilizers was a severe constraint for most farms (Cox and Wohlgenant 1986). This finding also implies that farmers face high (shadow) prices for cash inputs because of liquidity constraints.…”

Section: Inefficiency Resultsmentioning

confidence: 99%

“…The linear aggregator was used to aggregate inputs and outputs. The input and output prices obtained did not vary across farms, implying that differences in the composition of a netput on the quality were reflected in the quantity (Cox and Wohlgenant 1986). Thus, to implement the overall profit inefficiency given by (6) we assumed that all farms face the same output-input prices vector (i.e.…”

Section: First Stage Datamentioning

confidence: 99%

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Lowland farming system inefficiency in Benin (West Africa): directional distance function and truncated bootstrap approach

Singbo

Lansink

2010

Food Sec.

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This paper uses a directional distance function and a single truncated bootstrap approach to investigate inefficiency of lowland farming systems in the Benin Republic. First, we employed a dual approach to estimate and decompose short-run profit inefficiency of each farming system into pure technical, allocative and scale inefficiency and also into input and output inefficiency. Second, an econometric analysis of factors affecting the inefficiency was generated using a single truncated bootstrap procedure to improve inefficiency analysis statistically and obtain consistent estimates. In the short run, scale, allocative and output inefficiency were found to be the main sources of inefficiency. Based on inefficiency results, the inefficiency of lowland farming systems is the most diverse. Compared to a vegetable farming system, technical inefficiency is significantly higher if farmers switch to a rice farming system. Scale, allocative, output, and input inefficiency are significantly lower with an integrated ricevegetable farming system and there was high prevalence of increasing returns to scale in the integrated rice-vegetable farming system. Water control and lowland farming systems are complements and play a significant role in the level of inefficiency. Input inefficiency shows the difficulty that the producers face in adjusting the quality and quantity of seeds and fertilizers. The paper provides empirical support for efforts to promote an integrated rice-vegetable farming system in West Africa lowlands to increase food security.

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Section: Inefficiency Resultsmentioning

confidence: 99%

Section: First Stage Datamentioning

confidence: 99%

Lowland farming system inefficiency in Benin (West Africa): directional distance function and truncated bootstrap approach

Singbo

Lansink

2010

Food Sec.

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“…For beef, pork, veal and sheep and goat meat the Swiss Federal Office for Agriculture calculates monthly average consumer prices by regions which we take as market prices. For the other items (poultry meat and fish) missing information of price data were replaced using the approach presented in Majumder et al (2012) who extended the approach of Cox and Wohlgenant (1986). They proposed to adjust unit values for the impact of quality and use them as market prices (see also e.g., Park et al 1996;Thiele 2010).…”

Section: Methodsmentioning

confidence: 99%

Determinants of sheep and goat meat consumption in Switzerland

Aepli

Finger

2013

Agric Econ

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In this study, we estimated the influence of different meat prices, socio-demographic and geographic variables on sheep and goat meat demand using the Swiss household expenditure survey from 2000 to 2005, a micro data set on 20,940 households resident in Switzerland. This study is motivated by the fact that sheep and goats play a major economic role especially for small farms in Swiss agriculture and contribute to conservation of landscape and biodiversity especially in the mountain regions. Considering the high share of households with zero consumption for sheep and goat meat, we estimated a Tobit-model. Missing prices are replaced by monthly, regional market prices where possible, or by quality adjusted prices based on unit values. Our results show that pork is a substitute for sheep and goat meat, whereas beef is a complementary good, and that socio-demographic variables like education or the presence of children and geographic variables are important in determining demand of sheep and goat meat.

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“…Another approach is to derive individualized prices -and individualized price indices, respectively -directly from expenditures data (e.g. Cox and Wohlgenant, 1986;Hoderlein and Mihaleva, 2008). However, in many applications individual-level information on expenditures may also be unavailable, as it is the case for the data used for the analysis at hand.…”

Section: Introductionmentioning

confidence: 99%

Tobacco and alcohol: complements or substitutes?

et al. 2012

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThe question of whether alcohol and tobacco are consumed as complements or substitutes is crucial for determining the side-effects of anti-smoking policies. Numerous papers have empirically addressed this issue by estimating demand systems for alcohol and tobacco and subsequently calculating cross-price effects. However, this traditional approach is often seriously hampered by insufficient price variation observed in survey data. We therefore suggest an alternative instrumental variables approach that statistically mimics an experimental study and does not rely on prices as explanatory variables. This approach is applied using German survey data. Our estimation results suggest that a reduction in tobacco consumption results in a moderate reduction in alcohol consumption. It is demonstrated that this implies that alcohol and tobacco are complements. Hence, we conclude that successful anti-smoking policies will not result in the unintended side-effect of an increased (ab)use of alcohol. complements or substitutes interdependence in consumption tobacco and alcohol insufficient price-variation instrumental variables approach JEL Classification C31 · D12 · I12

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Prices and Quality Effects in Cross‐Sectional Demand Analysis

Cited by 335 publications

References 23 publications

Lowland farming system inefficiency in Benin (West Africa): directional distance function and truncated bootstrap approach

Lowland farming system inefficiency in Benin (West Africa): directional distance function and truncated bootstrap approach

Determinants of sheep and goat meat consumption in Switzerland

Tobacco and alcohol: complements or substitutes?

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