Oral Capps

Demand Analysis of Fresh and Frozen Finfish and Shellfish in the United States

Household expenditures for at-home consumption on three species of shellfish and five species of finfish were analyzed. Factors explaining the variation of expenditures on seafood commodities were own price, household income, coupon value, household size, geographic region, urbanization, race, and seasonality. Own-price elasticities ranged from −0.45 (flounder/sole) to −1.13 (oysters). Expenditures on fishery products were more sensitive to changes in household size than to changes in household income. Cross-price effects of red meat and poultry were not statistically significant. For comparison purposes, estimates of own-price, income, and household size elasticities from the literature were made with this set of elasticities.

Analysis of Food Stamp Participation Using Qualitative Choice Models

Food stamp program participation at the household level was analyzed using a nationwide sample of households as well as refined measures of residential location, source of income, and household age distribution. Additionally, an empirical comparison of probit analysis vis-a-vis logit analysis was provided. The criteria for the comparison consisted of the use of estimated parameter values, signs, magnitudes, and test statistics, goodness-of-fit to sample data, predictive ability to independent data samples, and non-nested testing procedures. On the basis of this application, the two alternatives appeared to perform equally well.

Intended and unintended consequences of a proposed national tax on sugar‐sweetened beverages to combat the U.S. obesity problem

Monthly data derived from the Nielsen Homescan Panel for calendar years 1998 through 2003 are used to estimate the effects of a proposed tax on sugar-sweetened beverages (SSBs). Most arguments in describing the ramifications of a tax fail to consider demand interrelationships among various beverages. To circumvent this shortcoming we employ a variation of Quadratic Almost Ideal Demand System (QUAIDS) model. The consumption of isotonics, regular soft drinks and fruit drinks, the set of SSBs, is negatively impacted by the proposed tax, while the consumption of fruit juices, low-fat milk, coffee, and tea is positively affected. Diversion ratios are provided identifying where the volumes of the SSBs are directed as a result of the tax policy. The reduction in the body weight as a result of a 20% tax on SSBs is estimated to be between 1.54 and 2.55 lb per year. However, not considering demand interrelationships would result in higher weight loss. Unequivocally, it is necessary to consider interrelationships among non-alcoholic beverages in assessing the effect of the tax.

A Demand Systems Analysis of Food Commodities by U.S. Households Segmented by Income

Using the 1987–88 Nationwide Food Consumption Survey, twelve food commodity groups were analyzed according to household poverty status. Parameter estimates were used to obtain subsistence expenditures, own-price elasticities, expenditure elasticities, and income elasticities. Own-price elasticities were similar between the income groups for most commodities. However, income elasticities were consistently higher for the lower-income group. The use of average estimates of price and income elasticities for the population as a whole for the projection of individual commodity demands is not likely to be successful if notable changes are evident in income distribution. Copyright 1996, Oxford University Press.

Utilizing Scanner Data to Estimate Retail Demand Functions for Meat Products

Retail demand relationships for steak, ground beef, roast beef, chicken, pork chops, ham, and pork loin were examined using scanner data from a retail food firm located in Houston. Own-price elasticities were negative, statistically significant, and—except for roast beef—in the inelastic range. With few exceptions, cross-price elasticities were positive and statistically significant. Nearness to payday was not a key factor, but seasonal patterns were evident. Except for pork commodities, own-advertisement elasticities were positive and statistically significant. Generally speaking, cross-advertisement effects were marginal.

Analysis of Food-Away-from-Home Expenditure Patterns for U.S. Households, 1982–89

The two-step decision process for food-away-from-home (FAFH) consumption is empirically estimated using a generalization of the Heien and Wessells approach. Household information gathered by the National Panel Diary Group is used for the analysis. Marginal effects are corrected by untangling the respective variable impacts on the inverse Mills ratio. Expenditure and participation probability elasticities are similar to previous studies. Income elasticities are about 0.20, suggesting that the FAFH commodity is a necessary good for U.S. society. Northeastern households are less likely to consume FAFH than other households, but their expenditures are higher on average. Copyright 1996, Oxford University Press.

Estimation of Demand Functions Using Cross-Sectional Household Data: The Problem Revisited

A procedure that corrects for selectivity bias is proposed to estimate demand functions using cross-sectional data under the assumption that prices vary across households. This procedure, which extends the work by Cox and Wohlgenant, includes a two-equation system of expenditure and unit value functions. This model is applied to household expenditures for beef steaks and roasts. Copyright 1998, Oxford University Press.

Household Demand for Convenience and Nonconvenience Foods

A variation of the Almost Ideal Demand System was employed to determine the impacts of total food expenditure, income, food prices, household size, and demographic variables on household demand for convenience and nonconveninece foods in the United States. The budget shares are generally more responsive to prices than to real total expenditure. Additionally, the quantities demanded of convenience and nonconvenience foods are generally more sensitive to changes in income and own-prices than to changes in cross-prices. With regard to demographic variates, primary users of convenience foods are white households with employed household managers less than 35 years of age.

Demand for Prepared Meals by U.S. Households

Using the 1987–88 NFCS, a Heckman two-stage procedure was used to estimate the demand for prepared meals by U.S. households. Prepared meals were defined as those ready to eat and those ready to cook. Households headed by younger, more educated, and time-constrained managers were more likely to purchase prepared meals. Income elasticities ranged from 0.07 to 0.13, while own-price elasticities ranged from −0.23 to −0.66. Evidence exists to indicate that prepared meals and food-away-from-home are substitutes. The presence of teenagers in a household is positively associated with expenditures of prepared meals. Copyright 1997, Oxford University Press.

Tests of Weak Separability in Disaggregated Meat Products

Parametric tests of weak separability are conducted among twenty-one disaggregate meat products, using scanner data and the absolute price version of the Rotterdam model. The tests indicate that consumers neither select among various cuts or qualities of a particular meat type nor select among meat types of like quality. Four partitions of the meat products are examined; in each case, the hypothesis of weak separability is rejected.