Microeconometric models of consumer demand

Abstract

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How are SNAP Benefits Spent? Evidence from a Retail Panel

“…The loyalty card is used to deliver and track promotions. 21 Communication with the retailer indicates that at least 90 percent of purchases involve the use of a loyalty card, consistent with the magnitude reported by Andreyeva et al (2013), who also conduct research using loyalty card data from a grocery retailer.…”

“…23 Of the household-months in our panel, 7.7 percent are SNAP months. Of the households in our panel, 42.9 percent experience at 21 Elizabeth Holmes, "Why Pay Full Price? Stores Give Discounts, Sneak Peeks, Secret Sales; Just Hand over Personal Data," Wall Street Journal, May 5, 2011.…”

How Are SNAP Benefits Spent? Evidence from a Retail Panel

“…25 Among all nonfuel purchases in our data, 71 percent of spending goes to SNAPeligible products, 25 percent goes to SNAP-ineligible products, and the remainder goes to products that we cannot classify. 26 We use our detailed payment data for purchases made in SNAP months in March 2009 or later to validate our product eligibility classification. Among all purchases made at least partly with SNAP in which we classify all products as eligible or ineligible, in 98.6 percent of cases the expenditure share of SNAP-eligible products is at least as large as the expenditure share paid with SNAP.…”

“…Grocery and prepared food items intended for home consumption are generally SNAP-eligible (FNS 2017a). Alcohol, tobacco, pet food, and prepared food intended for on-premise consumption are SNAP-ineligible (FNS 2017a) 26. Using the Nielsen Homescan Consumer Panel data that we describe in Appendix A, we calculate that the share of SNAP-eligible spending among all classified nonfuel spending is at the fifteenth percentile of the top 20 grocery retail chains by total sales 27.…”

A BLP Demand Model of Product-Level Market Shares with Complementarity

“…Fan (2013) studies newspaper market in 11 Examples include consumer choice in supermarket (Hendel (1999), Dubé (2004), Lee et al (2013), Kwak et al (2015), Thomassen et al (2017), Ershov et al (2018)), household choice among motor vehicles (Manski and Sherman, 1980), choice of telecommunication services (Liu et al (2010), Crawford and Yurukoglu (2012), Grzybowski and Verboven (2016), Crawford et al (2018)), subscription decision (Nevo et al (2005), Gentzkow (2007)), firms' decision on technology adoptions (Augereau et al (2006), Kretschmer et al (2012)). See for a survey of complementary choices and sections 4.2-4.3 of Dubé (2018) for a survey of econometric modelling of complementary goods.…”