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Zeroes expenditure represent a difficulty in the analysis of household survey data. Zero expenditures are the result of two phenomena: nonconsumption and infrequency of purchase. Distinguishing between these types of zeroes is difficult in the kinds of data of interest to agricultural economists. This paper proposes a novel approach that yields less biased estimates of latent expenditure when the cause of the zeroes is unknown.

Subject(s): Consumer/Household Economics

Issue Date: 2006

Publication Type: Conference Paper/ Presentation

PURL Identifier:

Total Pages: 14

Series Statement: Selected Paper

Record appears in: American Agricultural Economics Association (AAEA) > 2006 Annual meeting, July 23-26, Long Beach, CA

Autor: Beatty, Timothy K.M.


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