Characterizing Taste Change in a Model of U.S. Meat Demand: Correcting for Spurious Regression and Measurement Errors.” Review of Agricultural Economics 15(1993):313–24

Taste or preferences comprise an unobservable latent variable in utility and demand functions. This latent variable can be estimated byusing its indicator and cause variables in a structural equation model. Empirical results show that taste changes have been a significant factor in explaining both declining beef and increasing poultry per capita consumption. Since the early 1980's, there has been spirited discussion among agricultural econo-mists concerning possible structural changes in meat demands, especially beef and chicken demands. Some argued that consumer cholester-01 awareness as well as other nutritional and health concerns mayhave generated a departure in meat demand from long-term trends, with consumers buying more white meat and less red meat. Previous studies, however, yielded mixed results. Although the debate is still ongoing, some have blamed agricultural econo-mists for failing to come to a consensus on this issue (Purcell). Purcell has argued that because the beef industry did not respond to consumer taste changes in a timely fashion, it has suffered dearly from shrinking herds, low cattle prices, forced disinvestment, and losses, while consumers have suffered from higher retail prices and lack of variety. Of the selected studies on this importan