A Microeconometric Analysis of Consumer Taste Determination and Taste Change for Beef

10 Pages Posted: 31 Mar 2020

See all articles by X.M. Gao

X.M. Gao

affiliation not provided to SSRN

Eric J. Wailes

University of Arkansas - Department of Agricultural Economics & Agribusiness

Gail L. Cramer

Louisiana State University, Baton Rouge - Department of Agricultural Economics and Agribusiness

Date Written: May 1997

Abstract

A new method for modeling determination of consumer taste and a test of the taste‐change hypothesis is presented. Taste varies across households because of differences in household characteristics. The method has a Multiple Indicator and Multiple Cause model interpretation, with taste as an unobserved variable. Taste indicators are residuals of regular household demand functions, the factors unexplained by prices and household expenditures. Taste‐cause variables are household characteristics and other variables. The proposed model is applied to U.S. beef demand using household data. Results show that structural taste changes, unexplained by changes in demographic composition, decreased 8% from 1977 to 1987.

Keywords: beef demand, consumer taste, household consumption, latent variable, D120, Q110

Suggested Citation

Gao, X.M. and Wailes, Eric J. and Cramer, Gail L., A Microeconometric Analysis of Consumer Taste Determination and Taste Change for Beef (May 1997). American Journal of Agricultural Economics, Vol. 79, Issue 2, pp. 573-582, 1997, Available at SSRN: https://ssrn.com/abstract=3562599 or http://dx.doi.org/10.2307/1244154

X.M. Gao (Contact Author)

affiliation not provided to SSRN

No Address Available

Eric J. Wailes

University of Arkansas - Department of Agricultural Economics & Agribusiness ( email )

Fayetteville, AR 72701
United States
39-6-5705-6894 (Phone)
39-6-5705-4495 (Fax)

Gail L. Cramer

Louisiana State University, Baton Rouge - Department of Agricultural Economics and Agribusiness ( email )

101 Agricultural Administration Building
Baton Rouge, LA 70803-5604

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
4
Abstract Views
97
PlumX Metrics