Hostname: page-component-cd9895bd7-hc48f Total loading time: 0 Render date: 2024-12-26T03:03:04.424Z Has data issue: false hasContentIssue false
  • English
  • Français

Adult Equivalent Scales Revisited

Published online by Cambridge University Press:  28 April 2015

Michael Demoussis  and
Vassilis Mihalopoulos
Michael Demoussis
Affiliation:
Department of Economics of the University of Patras
Vassilis Mihalopoulos
Affiliation:
Department of Economics of the University of Patras
Get access Rights & Permissions [Opens in a new window]

Abstract

Use of the Tobit model for estimation of adult equivalent scale (AES) parameters and expenditure equations presupposes that zero observations represent exclusively corner solutions. This paper tests for the underlying causes of zero observations and estimates accordingly the AES parameters, the household size in adult equivalents and the resulting expenditure equations and consumption profiles. The empirical application concerns Greek household “soft” and “hard” cheese consumption. The statistical results indicate that for the examined cheese categories the “double hurdle participation” model adjusted for non-normality and heteroskedasticity is the appropriate model for the estimation of AES parameters and expenditure equations.

Keywords

adult equivalent scalesdouble-hurdle modelssoft and hard cheeseGreece
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 33 , Issue 1 , April 2001 , pp. 135 - 146
Copyright
Copyright © Southern Agricultural Economics Association 2001

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Amemiya, T. “Tobit Models: A Survey.” Journal of Econometrics 24(1984): 3–61.CrossRefGoogle Scholar
Anderson, M. and Senauer, B.. “Non-Purchasing Households in Food Expenditure Survey: An Analysis for Potatoes in Sweden.” Staff Paper P 94-4, University of Minnesota, 1994.Google Scholar
Blisard, N. and Blaylock, J. “Distinguishing Between Market Participation and Infrequency of Purchase Models of Butter Demand.” American Journal of Agricultural Economics 75 (May 1993): 314–320.CrossRefGoogle Scholar
Blokland, J.Continuous Consumer Equivalence Scales. The Hague: Martinas Nijhoff, 1976.CrossRefGoogle Scholar
Burbidge, J., Magee, L. and Robb, A. “Alternative Transformations to Handle Extreme Values of the Dependent Variable.” Journal of American Statistical Association 83(1988): 123–127.CrossRefGoogle Scholar
Buse, R. and Salathe, L. “Adult Equivalence Scales: An Alternative Approach.” American Journal of Agricultural Economics 60(1978): 460–468.CrossRefGoogle Scholar
Cragg, J. “Some Statistical Models for Limited Dependent Variables with Applications to the Demand for Durable Goods.” Econometrica 39(1971): 829–844.CrossRefGoogle Scholar
Draper, N. and Smith, H.. Applied Regression Analysis. John Wiley & Sons, New York, 1966.Google Scholar
Godfrey, L. “Testing Against General Autoregressive and Moving Average Error Models When the Regressors Include Lagged Dependent Variables.” Econometrica 46(1978b): 1293–1302.CrossRefGoogle Scholar
Gould, B. “The Demand for Cheese in the United States: The Role of Household Composition.” Agribusiness 10(1994): 43–59.3.0.CO;2-G>CrossRefGoogle Scholar
Gould, B. “At Home Consumption of Cheese: A Purchase-Infrequency Model.” American Journal of Agricultural Economics 74(1992): 453–459.CrossRefGoogle Scholar
Greene, W.LIMDEP User's Manual and Reference Guide, Version 7.0. New York: Econometric Software, 1997.Google Scholar
Greene, W.Econometric Analysis. New York: McMillan Publishing Co., 1990.Google Scholar
Karlin, S. and Taylor, H.. A First Course in Stochastic Processes, Vol. 1. New York: Academic Press, 1975.Google Scholar
Levinson, D., Darrow, C., Klein, E., Levinson, M. and Mckee, B.. The Seasons of a Man's Life. New York: Ballantine Book, 1978. National Statistical Service of Greece (NSSG).Google Scholar
Household Expenditures Survey 1993-1994. Athens, 1996.Google Scholar
Prais, S. and Houthakker, H.. The Analysis of Family Budgets. Cambridge: Cambridge University Press, 1955.Google Scholar
Price, D. “Unit Equivalence Scales for Specific Food Commodities.” American Journal of Agricultural Economics 52(1971): 224–233.CrossRefGoogle Scholar
Pudney, S.Modeling Individual Choice, the Econometrics of Corners, Kinks and Holes. New York: Basic Blackwell Inc., 1989.Google Scholar
Reynolds, A. and Shonkwiler, J.. “Testing and Correcting for Distributional Misspecifications in the Tobit Model: An Application of the Information Matrix Test.” Empirical Economics 16(1991): 313–323.Google Scholar
Su, S. and Yen, S. “Microeconometrie Models of Infrequently Purchased Goods: An Application to Household Pork Consumption.” Empirical Economics 21(1996): 513–533.CrossRefGoogle Scholar
Tedford, J., Capps, O. and Havlicek, J. “Adult Equivalent Scales Once More—A Developmental Approach.” American Journal of Agricultural Economics 68(1986): 322–333.CrossRefGoogle Scholar
Vuong, Q. “Likelihood Ratio Test for Model Selection and Non-Nested Hypotheses.” Econometrica 57(1989): 307–333.CrossRefGoogle Scholar
Yen, S. and Huang, C. “Household Demand for Finfish: A Generalized Double-Hurdle Model.” Journal of Agricultural and Resource Economics 21(1996): 220–234.Google Scholar
Yen, S., Jensen, H. and Wang, Q. “Cholesterol Information and Egg Consumption in the U.S.: A Nonnormal and Heteroscedastic Double-Hurdle Model.” European Review of Agricultural Economics 23(1996): 343–356.CrossRefGoogle Scholar
Yen, S. and Jones, A. “Household Consumption of Cheese: An Inverse Hyperbolic Sine Double-Hurdle Model with Depended Errors.” American Journal of Agricultural Economics 79(1997): 246–251.CrossRefGoogle Scholar