TY - JOUR
T1 - Double-hurdle and purchase-infrequency demand analysis
T2 - A feasible integrated approach
AU - Kimhi, Ayal
PY - 1999
Y1 - 1999
N2 - This paper proposes an integrated model that incorporates, as special cases, the double-hurdle arid the purchase-infrequency models, both previously used to account for zero observations in commodity demand analyses. Monte-Carlo simulations show that the integrated model is more robust to misspecification of the censoring rule than any of the two simpler models. The integrated model is then applied to the demand for tobacco products in Israel. The purchase-infrequency results were closer to those of the integrated model than the results of the double-hurdle model.
AB - This paper proposes an integrated model that incorporates, as special cases, the double-hurdle arid the purchase-infrequency models, both previously used to account for zero observations in commodity demand analyses. Monte-Carlo simulations show that the integrated model is more robust to misspecification of the censoring rule than any of the two simpler models. The integrated model is then applied to the demand for tobacco products in Israel. The purchase-infrequency results were closer to those of the integrated model than the results of the double-hurdle model.
KW - Demand
KW - Integrated model
KW - Zero observations
UR - http://www.scopus.com/inward/record.url?scp=0033275618&partnerID=8YFLogxK
U2 - 10.1093/erae/26.4.425
DO - 10.1093/erae/26.4.425
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AN - SCOPUS:0033275618
SN - 0165-1587
VL - 26
SP - 425
EP - 442
JO - European Review of Agricultural Economics
JF - European Review of Agricultural Economics
IS - 4
ER -