Modelling structural change in the U.S. demand for meat

Recent empirical research on meat demand has debated whether or not the effects of changing meat prices can explain all the observed changes in meat consumption patterns. This thesis provides a framework for modelling and testing for structural change using three commonly used demand system — a linear demand system, an inverse demand system, and the Almost Ideal Demand System (AIDS). Emphasis is placed on the statistical adequacy of the models. Two specific issues are carefully addressed: consumer concern for cholesterol and its effect on meat demand, and the dynamics of adjustment in meat consumption. When modelling the demand for beef, pork, chicken and turkey, none of the three demand systems are found to be statistically adequate, and consequently, cannot be used to address structural change issues for these particular data and commodities. The AIDS models are re-estimated in an attempt to model the demand for beef, pork, chicken and fish instead of turkey. The dynamic versions of the AIDS models using either a gradual shift spline path, a Farley-Hinich path, a variable measuring cholesterol awareness, or the log of the cholesterol awareness variable are all statistically adequate. Likelihood ratio tests on these models indicate that structural change has occurred. The significance of the cholesterol variable in the demand models indicates that health concern is an important factor in meat purchasing decisions.

Name thesis:degree_name

Master of Science

Level thesis:degree_level

masters

Discipline thesis:degree_discipline

Agricultural Economics

Department dc:contributor.department

Agricultural Economics

Grantor dc:publisher

Virginia Tech

Year dc:date.issued

1991

Author dc:creator

• Huang, Huilin

Chairs dc:contributor.committeechair

• McGuirk, Anya M.
• Alwang, Jeffrey R.

Committee member dc:contributor.committeemember

• Driscoll, Paul J.

Statement dc:rights

• In Copyright

Licence dc:rights.uri

• http://rightsstatements.org/vocab/InC/1.0/

Language dc:language.iso

en

Dc Identifier Other

etd-04082009-041415

OAI identifier oai:identifier

oai:vtechworks.lib.vt.edu:10919/42003