AN APPLICATION OF THE KUHN-TUCKER MODEL TO THE DEMAND FOR WATER TRAIL TRIPS IN NORTH CAROLINA

The Kuhn-Tucker demand model is an attractive, recent addition to the methods available for analyzing seasonal, multiple-site recreation demand data. We provide a new application of the approach to the demand for sea paddling trips in eastern North Carolina and calculate welfare measures for changes in site characteristics. In addition, we present a non-technical, intuitive overview of the model and a stepwise derivation of the estimation and welfare calculation algorithms.Resource /Energy Economics and Policy,

CHOICE SET DEFINITION ISSUES IN A KUHN-TUCKER MODEL OF RECREATION DEMAND

Much of the literature on choice sets has focused on how alternative specifications of market scope and site definition impact site selection models and the resulting welfare estimates per choice occasion. In this paper, choice set definition issues are investigated using the Kuhn-Tucker model, which integrates the site selection and participation decisions in a unified and utility theoretic framework. This allows us to consider the impact that alternative site set definitions may have on both where individuals recreate and the numbers of trips they take. Using data from the 1997 Iowa Wetlands Survey we examine the effects on estimates and welfare measures of choice sets representing various levels of site aggregation and market scope. We find that significant differences in welfare measures arise from changing choice set definitions.Resource /Energy Economics and Policy,

Bayesian Estimation of The Impacts of Food Safety Information on Household Demand for Meat and Poultry

Consumer reaction to changes in the amount of food safety information on beef, pork, and poultry available in the media is the focus of this study. Specifically, any differences in consumer reactions due to heterogeneous household characteristics are investigated. The data used in this study are monthly data from the Nielsen Homescan panel and cover the time period January 1998 to December 2005. These panel data contain information on household purchases of fresh meat and poultry as well as demographic characteristics of the participating households. The data used to describe food safety information were obtained from searches of newspapers using the Lexis-Nexis academic search engine. Consumer reactions are modeled in this study using a demand system that allows for both discrete and continuous choice situations. A seemingly unrelated regression (SUR) tobit model is estimated using a Gibbs sampler with data augmentation. A component error structure (random effects model) is incorporated into the SUR tobit model to account for unobserved heterogeneity of households making repeated purchases over time. Estimates of food safety elasticities calculated from the random effects SUR tobit model suggest that food safety information does not have a statistically or economically significant effect on household purchases of meat and poultry.food safety, panel data, Gibbs sampler, component error, Agricultural and Food Policy, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety,

Estimation and Welfare Calculations in a Generalized Corner Solution Model with an Application to Recreation Demand

The Kuhn-Tucker model of Wales and Woodland (1983) provides a utility theoretic framework for estimating preferences over commodities for which individuals choose not to consume one or more of the goods. Due to the complexity of the model, however, there have been few applications in the literature and little attention has been paid to the problems of welfare analysis within the Kuhn-Tucker framework. This paper provides an application of the model to the problem of recreation demand. In addition, we develop and apply a methodology for estimating compensating variation, relying on Monte Carlo integration to derive expected welfare changes.

VARIETY DEMAND IN AN INTEGRATED AGRICULTURAL HOUSEHOLD MODEL WITH ATTRIBUTES: IMPLICATIONS FOR EMERGING CROP BIOTECHNOLOGIES

In this paper we consider the role of variety attributes in an agricultural household model of variety planting decisions. In an application to banana production in Uganda we derive a system of derived demands for a set of available banana varieties. Our empirical model uses a hudle/count data framework to examine simaltaneously the likelihood a household has experience with a given variety, and the amount of the variety that is planted. We find that production, consumption, and pest resistance attributes significantly influence planting decisions. These findings have implications for emerging crop biotechnologies.Research and Development/Tech Change/Emerging Technologies,

Measuring the Values for Time

Most economic models for time allocation ignore constraints on what people can actually do with their time. Economists recently have emphasized the importance of considering prior consumption commitments that constrain behavior. This research develops a new model for time valuation that uses time commitments to distinguish consumers' choice margins and the different values of time these imply. The model is estimated using a new survey that elicits revealed and stated preference data on household time allocation. The empirical results support the framework and find an increasing marginal opportunity cost of time as longer time blocks are used.

What's the Use? Welfare Estimates from Revealed Preference Models when Weak Complementarity Does Not Hold

In this paper we consider the theoretical and empirical ramifications of welfare measurement in revealed preference models when weak complementarity does not hold. In the context of a Kuhn-Tucker model of recreation demand we show that, while it is possible to estimate preferences that do not appear to exhibit weak complementarity, the calculation of welfare measurements from these models requires a cardinal interpretation of preferences that cannot be tested. Furthermore, we reiterate the under-appreciated fact that even traditional use value estimates require a cardinal restriction on preferences that, while often intuitive, also cannot be tested. We demonstrate empirically that the choice of restrictions can have significant ramifications, as use value estimates can vary widely based on the assumed preference structure.

MICROECONOMETRIC MODELING OF HOUSEHOLD FOOD DEMAND: THE CASE OF TRANSITION BULGARIA

Considerable optimism has been expressed about the outlook for increased exports of food products to Central and Eastern Europe. A clear understanding of the potential for increased exports to this region requires comprehension of consumers' demands for food products. This analysis resents detailed elasticity estimate for food commodities in transition Bulgaria. The analysis is conducted in two segments. The first considers demand for five aggregate food commodities---cereals, fruits and vegetables, meats, dairy products, other foods (including food consumed away from home and prepared foods), and all other goods. The estimates suggest relatively price inelastic demands. We find that cereals and dairy products tend to be income-inelastic while meats and other foods are income-elastic. We also consider a Kuhn-Tucker model of demand for individual meats. These results indicate that the demands for individual meat products are very price and income elastic.Consumer/Household Economics, Demand and Price Analysis,

What\u27s the Use? Welfare Estimates from Revealed Preference Models When Weak Complementarity Does Not Hold

In this paper we consider the theoretical and empirical ramifications of welfare measurement in revealed preference models when weak complementarity does not hold. In the context of a Kuhn–Tucker model of recreation demand we show that, while it is possible to estimate preferences that do not appear to exhibit weak complementarity, the calculation of welfare measurements from these models requires a cardinal interpretation of preferences that cannot be tested. Furthermore, we reiterate the under-appreciated fact that even traditional use value estimates require a cardinal restriction on preferences that, while often intuitive, also cannot be tested. We demonstrate empirically that the choice of restrictions can have significant ramifications, as use value estimates can vary based on the assumed preference structure