TY - JOUR
T1 - An Empirical Evaluation of Egg Demand in the United States
AU - Bakhtavoryan, Rafael
AU - Hovhannisyan, Vardges
AU - Devadoss, Stephen
AU - Lopez, Jose
N1 - Funding Information:
This work was supported by Wyoming Agricultural Experiment Station funding provided through the USDA National Institute of Food and Agriculture, Hatch project 1016328.
Publisher Copyright:
© 2021 Cambridge University Press. All rights reserved.
PY - 2021/5
Y1 - 2021/5
N2 - We adopt an EASI model to estimate demand for omega-3, organic, cage-free, and conventional eggs in the United States. Our empirical framework accounts for demand inter-dependencies among these egg types, while allowing for unrestricted Engel curves, unobserved consumer heterogeneity, and a broader product and geographic coverage. We further address endogeneity of prices and expenditures and left-censoring induced by disaggregate data. Our results indicate that the demand for organic and cage-free eggs is price-elastic, while the demand for omega-3 and conventional eggs is price-inelastic. Additionally, we establish strong substitutability relationships between the eggs. Finally, we measure consumer welfare consequences of rising domestic egg prices brought by Japan's egg import tariff reductions.
AB - We adopt an EASI model to estimate demand for omega-3, organic, cage-free, and conventional eggs in the United States. Our empirical framework accounts for demand inter-dependencies among these egg types, while allowing for unrestricted Engel curves, unobserved consumer heterogeneity, and a broader product and geographic coverage. We further address endogeneity of prices and expenditures and left-censoring induced by disaggregate data. Our results indicate that the demand for organic and cage-free eggs is price-elastic, while the demand for omega-3 and conventional eggs is price-inelastic. Additionally, we establish strong substitutability relationships between the eggs. Finally, we measure consumer welfare consequences of rising domestic egg prices brought by Japan's egg import tariff reductions.
KW - Exact Affine Stone Index model
KW - compensating variation
KW - egg demand structure
KW - expenditure and price endogeneity
UR - http://www.scopus.com/inward/record.url?scp=85108691521&partnerID=8YFLogxK
U2 - 10.1017/aae.2021.9
DO - 10.1017/aae.2021.9
M3 - Article
AN - SCOPUS:85108691521
SN - 1074-0708
VL - 53
SP - 280
EP - 300
JO - Journal of Agricultural and Applied Economics
JF - Journal of Agricultural and Applied Economics
IS - 2
ER -