A Censored Quantile Regression Analysis of Vegetable Demand: The Effects of Changes in Prices and Total Expenditure

"Many diseases are linked to dietary behavior. One major diet-related risk factor is a low consumption of vegetables. The consumption may be increased through public policies. The effects on vegetable purchases of either removing the value added tax on vegetables or a general income support are investigated. Adverse health effects are most serious in households consuming low quantities of vegetables. Therefore, the effects on high- and low-consuming households are estimated by using quantile regressions (QRs). Since many households did not purchase any vegetable during each survey period, censored as well as ordinary QRs are used. Our results suggest that the effects of the policy variables differ in different parts of the conditional distribution of vegetable purchases. None of the proposed policy options is likely to substantially increase vegetable purchases among low-consuming households." Copyright 2006 Canadian Agricultural Economics Society.