Browsing by Subject "Demand Systems"
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Item Applications of demand analysis for the dairy industry using household scanner data(Texas A&M University, 2005-02-17) Stockton, Matthew C.This study illustrates the use of ACNielsen Homescan Panel (HSD) in three separate demand analyses of dairy products: (1) the effect of using cross-sectional data in a New Empirical Industrial Organization (NEIO) study of ice cream firm mergers in San Antonio; (2) the estimation of hedonic price models for fluid milk by quart, halfgallon and gallon container sizes; (3) the estimation of a demand system including white milk, flavored milk, carbonated soft drinks, bottled water, and fruit juice by various container sizes. In the NEIO study a standard LA/AIDS demand system was used to estimate elasticities evaluating seven simulated mergers of ice cream manufactures in San Antonio in 1999. Unlike previously published NEIO work, it is the first to use crosssectional data to address the issue associated with inventory effects. Using the method developed by Capps, Church and Love, none of the simulated price effects associated with the mergers was statistically different from zero at the 5% confidence level. In 1995 Nerlove proposed a quantity-dependent hedonic model as a viable alternative to the conventional price-dependent hedonic model as a means to ascertain consumer willingness to pay for the characteristics of a given good. We revisited Nerlove?s work validating his model using transactional data indigenous to the HSD. Hedonic models, both price-dependent and quantity-dependent, were estimated for the characteristics of fat content, container type, and brand designation for the container sizes of gallon, half- gallon, and quart. A rigorous explanation of the interpretation between the estimates derived from the two hedonic models was discussed. Using the Almost Ideal Demand System (AIDS), a matrix of own-price, crossprice, and expenditure elasticities was estimated involving various container sizes of white milk, flavored milk, carbonated soft drinks, bottled water, and fruit juices, using a cross-section of the 1999 HSD. We described price imputations and the handling of censored observations to develop the respective elasticities. These elasticities provided information about intra-product relationships (same product but different sizes), intrasize relationships (different products same container size), and inter-product relationships (different products and different sizes). This container size issue is unique in the extant literature associated with non-alcoholic beverage industry.Item Econometric model of the U.S. sheep and mohair industries for policy analysis(Texas A&M University, 2005-08-29) Ribera Landivar, Luis AlejandroThe U.S. sheep industry has been declining in size for many years. Many factors have contributed to the decline of the sheep industry including declining consumption of lamb and mutton, the growth in manmade fiber use, scarcity of labor, and predator losses. In an effort to slow the rate of decline in the U.S. sheep industry, the U.S. Congress passed the Wool Act of 1954. In 1993, Congress passed a three-year phase out of the Wool Act incentive payments with the last payments occurring in 1996. The 2002 Farm Bill included a marketing loan program for wool. The loan rates are set to $0.40 per pound for un-graded wool, $1.00 per pound for graded wool. In recent years exchange rate changes have had a large impact on the industry affecting lamb and wool trade. The U.S. is the second largest producer of mohair and Texas accounts for over 85 percent of the U.S. mohair production. Mohair also received incentive payments through the Wool Act. Mohair payments were also phased out along with the wool incentive payments. Moreover, the 2002 Farm Bill reinstated support for the industry by implementing a loan program with loan rates of $4.20 per pound of mohair. This analysis uses capital stock inventory accounting methodology to model the supply side of the sheep industry. Demand is incorporated using traditional single equations and complete demand system estimation methods. OLS, 2SLS, and 3SLS models are developed and tested for the single equations estimation methods. The OLS model is used to model the impacts of three different levels of loan rates for wool. Also, an OLS mohair model is developed and used to examine the impacts of three different levels of loan rates for mohair. Results indicate that the sheep industry will continue to decline even with the marketing loan program for wool in the 2002 Farm Bill. However, a higher loan rate for wool would reduce the decline rate of the industry. The Angora goat industry will continue to decline in size, but with a higher loan rate for mohair, the number of goats clipped would increase.