THE FAST METHOD: ESTIMATING UNCONDITIONAL DEMAND ELASTICITIES FOR PROCESSED FOOD IN THE PRESENCE OF FIXED EFFECTS

This study estimated a set of unconditional own-price and expenditure elasticities for 49 processed food categories using scanner data and the FAST multistage demand system. Overall, our estimated own-price and expenditure elasticities are generally much larger, in absolute terms, than previous estimates. The use of disaggregated product groupings and the estimation of unconditional elasticities accounts for these higher estimates. Over half of the own-price elasticities are larger, on an absolute basis, than 0.9. Providing more disaggregate product level demand elasticities could aid in the economic analysis of issues relating to industry competitiveness or the impact of public policy.


Issue Date:
2003
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/21893
Total Pages:
32
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-08-22

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