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Adult Equivalent Scales Revisited

Published online by Cambridge University Press:  28 April 2015

Michael Demoussis  and
Vassilis Mihalopoulos
Michael Demoussis
Affiliation:
Department of Economics of the University of Patras
Vassilis Mihalopoulos
Affiliation:
Department of Economics of the University of Patras
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Abstract

Use of the Tobit model for estimation of adult equivalent scale (AES) parameters and expenditure equations presupposes that zero observations represent exclusively corner solutions. This paper tests for the underlying causes of zero observations and estimates accordingly the AES parameters, the household size in adult equivalents and the resulting expenditure equations and consumption profiles. The empirical application concerns Greek household “soft” and “hard” cheese consumption. The statistical results indicate that for the examined cheese categories the “double hurdle participation” model adjusted for non-normality and heteroskedasticity is the appropriate model for the estimation of AES parameters and expenditure equations.

Keywords

adult equivalent scalesdouble-hurdle modelssoft and hard cheeseGreece
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 33 , Issue 1 , April 2001 , pp. 135 - 146
Copyright
Copyright © Southern Agricultural Economics Association 2001

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