The Federal Hop Marketing Order and Volume-Control Behavior

The Hop Administrative Committee of the hop marketing order has been reasonably accurate m projecting quantities supplied and demanded and in formulating their recommended salable percentage to the Secretary of Agriculture The Federal Hop Marketing Order has helped stabilize hop acreages and nominal hop prices and has reduced cyclical variation In production Acreage and production stabilization may indicate a more stable decision environment leading to a more efficient resource allocatio

Milk by Any Other Name … Consumer Benefits from Labeled Milk

This article uses revealed preferences of consumers to study the consumer benefits from rBST-free and organic labeled milk. The article specifies and estimates a quadratic AIDS demand system model for different milk types using U.S. supermarket scanner data. The introduction of rBST-free and organic milk is used to estimate consumer benefits that are decomposed into two components, competitive and variety effects. Results show significant consumer benefits from organic milk and to a lesser extent from rBST-free milk. Based on the findings, we explore implications for present U.S. labeling standards. Copyright 2005, Oxford University Press.

An Empirical Assessment of Endogeneity Issues in Demand Analysis for Differentiated Products

This article explores the issue of price and expenditure endogeneity in empirical demand analysis. The analysis focuses on the U.S. carbonated soft drink market. We test the null hypothesis that price and expenditures are exogenous in the demand for carbonated soft drinks. Using an almost ideal demand system (AIDS) specification, we strongly reject exogeneity for both prices and expenditures. We find that accounting for price/expenditures endogeneity significantly impacts demand elasticity estimates. We also evaluate the implications of endogeneity issues for testing weak separability. Copyright 2003, Oxford University Press.