Interdependent Preferences for Seafood Consumption

Abstract

This paper considers interdependence in seafood consumption exploiting data on consumer expenditures in Spain, using dominance models. Interdependence is modeled by making parameters in both the participation and the consumption equations dependent upon current consumption in the reference group of a particular consumer. The estimates of a parsimonious model using latent variables reflecting interdependencies seem better in parameters as important as expenditure elasticity or correlation between decision to purchase seafood and the level of seafood consumption

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