An Empirical Evaluation of Egg Demand in the United States

Rafael Bakhtavoryan, Vardges Hovhannisyan, Stephen Devadoss, Jose Lopez

Research output: Contribution to journalArticlepeer-review

Abstract

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.

Original languageEnglish
Pages (from-to)280-300
Number of pages21
JournalJournal of Agricultural and Applied Economics
Volume53
Issue number2
DOIs
StatePublished - May 2021

Keywords

  • Exact Affine Stone Index model
  • compensating variation
  • egg demand structure
  • expenditure and price endogeneity

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