The demand for value-added and convenience: A household production approach

Timothy J. Richards, X. M. Gao, Paul M. Patterson

Research output: Contribution to journalArticle

7 Scopus citations

Abstract

Americans are consuming more complex carbohydrate-based foods. This study applies a household production model to investigate the role of US households’ demand for value-added and convenience, both defined as nonmarket commodities, in complex carbohydrate consumption. Empirical estimates of a translog household production system using Nationwide Food Consumption Survey (NFCS) data from 1977-1978 and 1987-1988 provide estimates of these commodities’ shadow values. The shadow values are used, in turn, to estimate demand functions for value-added and convenience. The results show highly significant and negative demand elasticities for both commodities, suggesting that this is a valuable tool for analyzing the structure of their demand.

Original languageEnglish (US)
Pages (from-to)363-378
Number of pages16
JournalAgribusiness
Volume14
Issue number5
DOIs
StatePublished - Sep 1998

ASJC Scopus subject areas

  • Food Science
  • Geography, Planning and Development
  • Animal Science and Zoology
  • Agronomy and Crop Science
  • Economics and Econometrics

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