Consistent two-step censored estimation is applied to household demand equations for disaggregated milk and cheese products. The long-run advertising elasticity for total milk was positive, largely due to low fat milk; however the elasticity for cheese was not significant, and only shredded...

Previous constant-parameter demand models have estimated generic advertising elasticities for cheese to be below that for fluid milk. We relax this assumption, allowing for generic advertising response to vary over time. Cheese advertising elasticities were found below fluid milk up until the...