A two-step model with sample selection is applied to panel data of U.S. households to estimate at-home demand for fluid milk and cheese, incorporating advertising expenditures. The model consistently accounts for sample-selection bias, unobserved household heterogeneity, and temporal...

This study develops an empirical framework to estimate quality-adjusted price elasticities from cross-sectional data. The new approach shows the importance of properly adjusting for quality variation in both prices and quantities in demand analysis. When quality adjustment is concerned only with...

Consistent two-step censored estimation is applied to household demand equations for disaggregated milk and cheese products. The long-run advertising elasticity for total milk was positive, largely due to low fat milk; however the elasticity for cheese was not significant, and only shredded...

A panel data Tobit model is developed to examine the household purchase process for a frequently purchased commodity. The proposed model accounts not only for censoring or sample selectivity, but also the temporal dependence of the purchasing process using household panel data. The flexible...

This study develops an empirical framework that can be used to estimate quality-adjusted price elasticities from cross-sectional data, which are theoretically consistent and comparable to elasticities from time-series data. The new approach shows the importance of properly adjusting for quality...

Recently, many commodity groups have shifted promotion expenditures from generic advertising to non-advertising activities such as in-store promotion programs. Accordingly, corresponding evaluation methods need to be developed to identify the benefits of these non-advertising programs. We...