A Box-Cox double-hurdle model

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Abstract

The double-hurdle model with dependence is extended by incorporating the Box-Cox transformation. The model nests a range of popular limited dependent variable models, including the Gaussian double-hurdle, the generalized Tobit, and two-part models. Estimates of US beef consumption suggest that the Box-Cox specification outperforms all other restrictive models. Price elasticities are small and similar to findings in the literature. Household age composition and demographic variables also play significant roles in determining beef consumption. Income and cross-price elasticities are insignificant.

Original languageEnglish
Pages (from-to)203-221
Number of pages19
JournalManchester school
Volume68
Issue number2
Publication statusPublished - Mar 2000

Keywords

  • STATISTICAL-MODELS
  • SAMPLE SELECTION
  • DEMAND
  • EXPENDITURES
  • CONSUMPTION
  • TOBACCO
  • HOME

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