Determinants of fruit and vegetable consumption in Malaysia: an ordinal system approach*

We examine the socio‐demographic determinants of fruit and vegetable consumption using household survey data from Malaysia. A bivariate ordered probability model is developed by the copula approach. Results for a system of fruit and vegetable servings per week indicate that education, age, ethnicity, income, location of residence, smoking status and health conditions are significant predictors of fruit and vegetable consumption in Malaysia. Policy implications are suggested.     

A Consistent Econometric Test for Bid Interdependence in Repeated Second-Price Auctions with Posted Prices

In repeated second-price experimental auctions, the winning bid is normally posted after each round. The posting of these winning prices after each round can result in bids submitted in later rounds to be interdependent with posted prices from earlier rounds. Several approaches in the past have tried to scrutinize their experimental data for value interdependence by regressing bids on lagged market prices or lagged bids and ignoring the inherent endogeneity problem. This paper introduces a formal test for bid interdependence in repeated second-price auctions with posted prices using a dynamic panel model. We then apply this test to formally check the presence of bid interdependence in three datasets used in previous studies.     

Physician's Advice Affects Adoption of Desirable Dietary Behaviors

Due to the prevalence of and economic costs associated with poor dietary behaviors, the purpose of our research is to investigate the relationship between receipt of physician's dietary advice and the individual's tendency to adopt the desirable dietary behavior. Using a trivariate probit model, we find that physician's advice has dramatic positive effects on the probability of both eating fewer high fat and high cholesterol foods and on eating more fruits and vegetables to reduce risk of developing heart disease or stroke.     

Acceptance of genetically modified food: comparing consumer perspectives in the United States and South Korea

This study examines public perceptions of biotechnology, specifically the consumer approval of genetically modified food products, from plant as well as from animal origin, based on data collected from national surveys conducted in both the United States and South Korea. South Korean consumers reported better understanding of food production, science, and technology relative to U.S. consumers. South Korean consumers also recalled having heard more about genetic modification than did U.S. consumers. Findings also suggest that consumers in the United States and South Korea who possessed an accurate knowledge of the applications and outcomes of genetic modification technology were more likely to approve of its use for the creation of foods than those who had inaccurate or no knowledge of the technology. Results also indicate that consumers who considered labeling of genetically modified foods to be necessary are less likely to approve of the genetic modification of foods than those who did not. Consumers in both countries are less approving of genetic modification of animals than the genetic modification of plants. However, U.S. consumers are more approving of using genetic modification technology to create animal‐derived foods than are South Korean consumers.     

Value elicitation for multiple quantities of a quasi‐public good using open ended choice experiments and uniform price auctions

Choice experiments and experimental auctions have become popular mechanisms for estimating willingness to pay (WTP). However, these methods have primarily been used for estimating WTP for single units of goods. We analyze the results from experimental auctions and choice experiments in the context of multiple quantities of a quasi‐public good (animal welfare product). We show that the use of WTP values for a single unit of a product, a common practice in experimental valuation literature, can result in underestimation of aggregate demand. We use and compare open ended choice experiments (OECE), second price Vickrey auctions, and random Nth price auctions as mechanisms for valuing WTP. Our results also suggest that individual level demand estimates from OECE are less elastic than demand estimates from uniform price auctions.     

Do consumers value hydroponics? Implications for organic certification

Recent controversy about the inclusion of hydroponics in the U.S. Department of Agriculture (USDA) organic program has highlighted uncertainty about marketing hydroponic crops. In a controversial vote in November 2017, the National Organic Standards Board chose not to recommend that hydroponic farms be banned from organic certification. It is still unclear, however, how consumers perceive and value hydroponic production. This study used a nonhypothetical choice experiment to estimate consumers’ willingness to pay for hydroponic and traditional lettuce both with and without organic certification. No hydroponic premium was found, but exposing consumers to different kinds of information about hydroponics significantly affected consumers’ preference formation. Findings generally suggest that the National Organic Program should consider ways to ensure the stability of organic premiums as perceptions about hydroponics evolve.     

The Demand for Vices in Malaysia: An Ethnic Comparison Using Household Expenditure Data

A trivariate Tobit system is estimated to investigate the demand for vices (tobacco, alcohol, and gambling) in Malaysia. Estimation results, segmented by ethnicity, suggest that years of formal education, occupation type, and household head’s age negatively affect both the likelihood to spend and the overall amounts spent on tobacco by all Malaysians. Additionally, while higher income Malay households are more likely to spend and have higher tobacco expenditures, affluent Chinese and households of other races are more likely to spend and to spend more on smoking, drinking and gambling. Male-headed households of all races are more likely to spend and also spend more on smoking, drinking and gambling than female-led households.     

The effects of nutritional labels on obesity

This study examines the relationship between nutritional label use and obesity using switching regression. Results for treatment effect show that nutritional labels play a role in reducing obesity among users of nutritional labels, notably among women. The average body mass index (BMI) for men who read nutritional labels is 0.12 point lower than men who do not read them, while women who are users of nutritional labels have 1.49 points lower BMI than women who do not read labels. These findings imply that health education campaigns can employ nutritional labels as one of the instruments for reducing obesity.